The decline in sales in the first quarter and concerns about the impact of U.S. tariffs led WK Kellogg to lower forecasts throughout the year.

The cereal maker expects its organic net sales to fall by 2-3% in 2025, while previous forecasts fell by 1%.

WK Kellogg also lowered its adjusted EBITDA forecast. Now, it expects the metric to be flat at best or a 2% drop at worst. The group predicted an increase of 4-6%.

WK Kellogg announced its first-quarter financial results yesterday (May 6), pointing out that it is "softer than expected consumption trends."

It also said its prospects “now include the modest impact of tariffs, mainly related to the procurement of raw materials outside North America.”

The company said its forecasts “assuming that most of our production remains exempt from tariffs on imports and exports to Canada and Mexico.”

However, it added: "There is no guarantee that this kind of suspension will
Retain indefinitely, or whether any new or expanded tariffs may further affect our business and operational performance. ”

WK Kellogg reported net income down 45.5% to $18 million in the March 29-29 quarter.

Net sales fell 6.2% of the $663 million compared to the same period last year. Net sales of organic fell 5.6% to $667 million.

Rice crispy maker reported operating profit in the first quarter was $20 million, down 56.5% year-on-year. Adjusted EBITDA also fell 4% to $72 million, mainly due to lower sales.

Gary Pilnick, Chairman and CEO of WK Kellogg, said: “Although the performance in the first quarter was lower than expected, which led to our 2025 outlook, we have made significant progress on our strategic priorities, including the supply chain modernization plan.

“As we exit 2026, we are still working to provide margins of about 500 benchmarks.”

Pilnik added: “In the first quarter, we saw consumers continue to focus on health and nutrition, which we think is a positive development in the category.

“We believe our portfolio has the ability to meet consumer needs and we are taking further action to accelerate plans in the field.”

In August, WK Kellogg announced the closure of its plant in Omaha, Nebraska and cut production at its Memphis, Tennessee.

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"Lower Q1 sales, tariff outlook sees WK Kellogg crop forecast" was originally created and published by GlobalData-owned brand Just Food.