Kellogg says expects continued cost inflation in 2013 Sees inflation approximately 5%, but sees cost savings at high end of 3%-4% range. Says inflation to be more front-end loaded, savings more back-end loaded. Says sees FY gross margin down approximately 50bps. Says has started to make changes that will increase margins of Pringles business over time. Says economic conditions remain difficult in Europe, but sees profit there in 2013. Says likely to repurchase shares to the extent of options proceeds to reduce dilution impact. Comments made on the Q4 earnings conference call.
Kellogg says goal is to drive business into sustainable top line growth Management stated that FY15 guidance is "pragmatic" and a step in the direction of growth. The company expects to return to growth in FY16 and beyond. Chief Growth Officer Paul Norman says the company needs to follow consumer trends and that the company needs to adapt to wellness trends. CFO Ron Dissinger stated that there is no change in the guidance provided last week and that Project K remains on track. Project K investments include innovation and renovation of food and packaging, geographic expansion, as well as channel expansion and growth. The company is aware that some consumers are looking for gluten-free options and the company has gluten-free products in its portfolio. Comments made during 2015 CAGNY Conference presentation.