Snack giant Kellanova, known for brands like Cheez-It and Pringles, reported strong quarterly performance and a positive outlook for 2025, just as shareholders approved a $36 billion merger with Mars Inc. The merger, initially announced in August, promises to create a powerhouse in the global snack market.
Kellanova’s latest earnings report shows a 6% rise in organic sales year-over-year and a 16.1% jump in profits. Although North American sales volumes declined by 0.5%, this was balanced by a 1.7% increase in pricing and product mix adjustments, exceeding Wall Street’s expectations. The results signal Kellanova’s resilience amid economic challenges impacting consumer spending across the food industry.
CEO Steve Cahillane highlighted the company’s solid positioning as it prepares to join Mars. “This performance is a testament to the talent and engagement of a Kellanova organization that is executing at a high level as we prepare for our exciting next chapter as part of a global snacking powerhouse with Mars,” he said in a statement.
In Friday’s shareholder vote, 77.5% backed the merger, as documented in an SEC filing. The deal now awaits regulatory approval and is expected to close in the first half of 2025. Cahillane noted in an August interview with Food Dive that the merger could foster innovation, with minimal regulatory hurdles anticipated given the companies’ limited overlap in snack bars.
The combined strength of Mars’ confectionery expertise with Kellanova’s snack portfolio positions the newly merged entity to thrive in an expanding global snacking market, with both companies optimistic about future growth.