Kellanova has capitalised on the strength of its brands to steadily raise prices, especially in international markets, helping it offset US consumer spending pressures due to president Donald Trump's fluctuating trade policies.
The Pop-Tarts maker has also seen steady demand for its breakfast staples, as inflation-conscious consumers continue to stock up on essential items despite a broader pullback in discretionary spending.
Family-owned sweets maker Mars, which announced a $36 billion deal to acquire Kellanova in August last year, has secured US antitrust clearance, while EU regulators launched an in-depth probe into the deal in June.
The deal is expected to close towards the end of 2025.
CEO Steve Cahillane said, "We managed through prolonged category-wide softness and higher costs."
Kellanova reported net sales of $3.26 billion in the three months ended 27 September, beating analysts' expectations of $3.25 billion, according to data compiled by the London Stock Exchange Group.
The company reported an adjusted profit of 94 cents per share in the quarter, surpassing market expectations of 87 cents per share.