Kellanova (K) has released an update to notify the public and investors about termination and asset disposition expenses.
Kellanova has announced major restructuring across its North American and European supply chains to boost productivity and efficiency. The North American reorganization, set to be completed by late 2024, involves closing a production facility and is predicted to deliver cost savings and gross margin improvements from the second half of 2024, with a full impact by 2025. It’s expected to incur $75 million in pre-tax charges. Meanwhile, the European network’s overhaul, expected to conclude by late 2026, may lead to $120 million in pre-tax charges. Both plans may face adjustments based on collective bargaining and employee consultations, with significant anticipated cash and non-cash expenses including severance, asset impairment, and capital costs.
For further insights into K financials, check out TipRanks’ Financials page.
For a comprehensive understanding of the announcement, you can read the full document here.
