The Kellogg Company, the Michigan-based manufacturer of Frosted Flakes, Rice Krispies and Coco Pops, this week reported first quarter sales of US$3.566bn - down 5% on the US$3.782bn it reported for Q1 2014.
Net income fell 44% from US$406m in Q1 2014 to US$227m, Kellogg reported on May 5.
Despite the reported decline in sales and profit, Kellogg said its first quarter results "were greater than the company's expectations."
"We were pleased to reported improved sales trends in the first quarter," said John Bryant, chairman and CEO, Kellogg. "In fact our sales exceeded our expectations and we are on-track for the year."
“We’ve made great progress with Project K and are investing to drive profitable sales growth.”
On the back of its Q1 results, Kellogg reaffirmed its currency-neutral comparable sales, profit, earnings per share and cash flow guidance for 2015.
Kellogg North America, which includes the company's US Morning Foods, US Snacks, and US Speciality segments, accounted for US$2.4bn of the company's Q1 US$3.566bn sales total.
Its breakfast cereals business, US Morning Foods, reported sales of US$776m for the quarter - down 2.9% from US$799m in Q1 2014. Despite the result, Kellogg insists it "represents an improvement from the performance we saw last year."
Innovation launches, including Raisin Bran Cranberry, Special K Protein and the Disney Frozen themed cereal, "performed well in the quarter," Bryant said during a call with analysts.
"Category trends improved, and Kellogg brands gained 30 basis points cereal category share in the quarter," he said.
Meanwhile, Kellogg's US Snacks business, which includes its cookies, crackers, and chips brands, reported sales of US$854m for the period - down 1.1% from US$864m in Q1 2014.
European Q1 sales were down 13.8% at US$607m, and in Asia Pacific sales fell 5.3% to US$230m.
In Latin America, however, Kellogg recorded sales of US$295m - a 6.3% increase on the US$278m reported in Q1 2014.
"I'm sure you'll agree we have an exciting opportunity for the years ahead. We've never been better positioned to grow given the dynamic categories where we participate with our leading brands," said Maria Fernanda Meija, president, Kellogg Latin America.
"A renewed strategy and focused initiatives all with the objective of driving long-term profitable growth and we focused on the organization."