WK Kellogg Co reported a significant drop in earnings and sales for the second quarter of fiscal 2025, amid its planned $3.1 billion acquisition by Ferrero Group. The company’s net income fell by 78% to $8 million, or 9¢ per share, compared to $37 million, or 42¢ per share, for the same period last year. The decline was attributed to lower net sales, supply chain disruptions, and costs related to business restructuring and the spin-off from its former parent company, Kellogg Co.
Second-quarter net sales dropped by 8.8%, totalling $613 million, and organic sales also decreased by the same percentage. The company’s adjusted EBITDA fell 31% to $57 million, reflecting an adjusted margin decline to 9.4%.
In line with its supply chain optimisation efforts, WK Kellogg is set to close its Omaha plant by the end of 2026 and scale back operations at its Memphis facility starting in late 2025. The company has earmarked $230 million to $270 million in restructuring charges for this initiative.
The acquisition by Ferrero, expected to be finalised in the second half of 2025, is progressing without major regulatory hurdles. WK Kellogg has yet to provide updated full-year guidance, following previous downward revisions to its sales and EBITDA forecasts.