WK Kellogg Q2 Income Drops 78%, Ferrero Deal Nears

WK Kellogg Co reported a challenging Q2 2025, with net income plunging 78% year-over-year to $8 million and net sales declining 8.8% to $613 million, both missing analyst expectations due to weak branded cereal demand and consumer shifts to private-label products. The company also experienced a decline in gross margin, and while U.S. net sales dropped, Canadian sales held steady. Ongoing restructuring costs, unplanned supply chain downtime, and the recent spin-off from Kellanova contributed to the disappointing results. WK Kellogg is undertaking a major supply chain modernization, including plant closures and production scale-downs, in an effort to optimize its cost structure. The $3.1 billion acquisition by The Ferrero Group is expected to close in the second half of 2025. The company continues to focus on managing commodity risks amid a changing breakfast market landscape.