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Diving Briefs:
- WK KELLOGG will spend $ 200 million in modernization of the supply chain this year. Q4 2024 Imported Presentation.
- The supply chain of serial producers has already increased. Productivity and waste reduction in 4QA 7.5% increase from the previous year In the adjusted ebitda February 11 Import Report.
- “It is meaningful because the team runs over time. And for us, even if the initiative is too complicated, it’s not a big surprise.” Gary Pilnick CEO He said that profitability has increased during the company’s Q4. Import phone.
Dive Insights:
WK Kellogg’s latest investment is part of three years. $ 500 million supply chain initiative In the second quarter of last year, it was announced to increase production production and improve profit margin.
Pilnick said there are eight clear initiatives in this plan. According to a report released in August 2024, $ 390 million in capital investmentS Allocated New infrastructure, equipment, technology and function of Michigan, Pennsylvania and Ontario facilities. This effort includes a $ 110 million restructuring cost to integrate the company’s manufacturing operation. Omaha, NebraskaAnd expanding production Tennessee Memphis.
“We prevents these priorities from interfering with the commercial agenda. So we integrate it with business operations.Pilnick said in the import call.
WK Kellogg’s modified supply chain was the main driving force. Almost 30% total margin in 2024And the company is still expecting to increase the EBITDA margin. 9% last year to 14% by the end of 2026 Through modernization.
“We offer the goal even in a challenging operating environment, showing the team’s execution ability and the import power of business.Pilnick said.
Despite the progress of the supply chain, manufacturers of SPECIAL K and Froot LOOPS reported 2%of deep business environments in 2024, citing 2%of the deep business environment compared to the previous year. Net profit also slipped 35%, and the company was found to be due to business and portfolio relocation and supply chain.
