Kellogg Co.'s net income edged up in the third quarter, as the breakfast giant benefited from its acquisition of Pringles chips.
The Battle Creek, Michigan-based company - best known for its Frosted Flakes, Pop-Tarts and Eggo waffles - bought the brand earlier this year in hopes of becoming a global player in the salty snacks market. The deal instantly made Kellogg the world's second-biggest salty snack food company, behind only PepsiCo Inc.'s Frito-Lay.
Since Pringles gets two-thirds of its revenue from overseas, Kellogg is also hoping the deal gives it inroads into the international markets where the ranks of people with more disposable income are growing.
"While it's early, we remain optimistic regarding the potential of this iconic brand," CEO John Bryant said in a statement.
During the third quarter, Kellogg said a stronger-than-expected performance by Pringles offset costs it incurred related to a Mini-Wheats recall last month. The cereal recall, combined with rising costs for ingredients and increased spending on brand building, reduced the company's core operating profit by five per cent. The measure excludes results from Pringles.
For the period ended Sept. 29, Kellogg says it earned $296 million, or 82 cents per share, in the quarter. That compares with $290 million, or 80 cents per share, a year ago.
