Kellogg Company 2007 Annual Report
Net Sales (million $)
Net sales increased again in 2007, the seventh consecutive year of growth.
Total Shareowner Return
For the seventh consecutive year, Kellogg Company's total return to shareowners exceeded that of the S&P Packaged Food Index.
Dividends ($ per share)
Dividends per share have increased 19% over the past 3 years.
Net Earnings Per Share ($) (diluted)
Earnings per share of $2.76 were 10% higher than 2006.
Operating Profit (million $)
Operating profit increased despite significant cost inflation and continued reinvestment into our business.
Cash Flow (a) (million $)
Including over $60 million of voluntary pension contributions, cash flow for 2007 remained strong at $1.03 billion.
Financial Highlights
| (dollars in millions, except per share data) | 2007 | Change | 2006 | Change | 2005 | Change |
|---|---|---|---|---|---|---|
| Net sales | $11,776 | 8% | $10,907 | 7% | $10,177 | 6% |
| Gross profit as a % of net sales | 44.0% | -0.2 pts | 44.2% | -0.7 pts | 44.9% | - |
| Operating profit | 1,868 | 6% | 1,766 | 1% | 1,750 | 4% |
| Net earnings | 1,103 | 10% | 1,004 | 2% | 980 | 10% |
| Net earnings per share Basic |
2.79 | 10% | 2.53 | 6% | 2.38 | 10% |
| Diluted | 2.76 | 10% | 2.51 | 6% | 2.36 | 10% |
| Cash flow (net cash provided by operating activities, reduced by capital expenditure) (a) |
1,031 | 8% | 957 | 24% | 769 | -19% |
| Dividends per share | $1.20 | 5% | $1.14 | 8% | $1.06 | 5% |
(a) Cash flow is defined as net cash provided by operating activities, reduced by capital expenditures. The Company uses this non-GAAP financial measure to focus management and investors on the amount of cash available for debt repayment, dividend distributions, acquisition opportunities and share repurchases. Refer to Management's Discussion and Analysis within Form 10-K for reconciliation to the comparable GAAP measure.
(b) Comparable 2006 earnings per share growth of 11% excludes $65 million ($42 million after tax or $.11 per share) of costs attributable to the Company's adoption of a new accounting standard that required the expensing of stock options.