Consumer TrendsThe challenging consumer backdrop and cereal category sales are expected to decline, which casts doubt on the company's optimistic growth forecast.
Market ShareMarket share declines suggest that the spin-off has not yet improved the company's competitiveness in the structurally declining breakfast cereal category.
Sales PerformanceKLG's Q4'24 sales/volumes fell ~5%/9% y/y, a marked acceleration from down ~2%/4% in Q3, and a material underperformance vs. the RTE cereal category down ~2%/4%.