The turtle lives 'twixt plated decks
Which practically conceal its sex.
I think it clever of the turtle
In such a fix to be so fertile.
-- Ogden Nash, "The Turtle"
On April 30 -- the last day of National Poetry Month -- breakfast foods expert Kellogg Company
- Management said the strong revenue growth came from brand building and innovation -- not bad for a supposedly stodgy cereal specialist!
- The bottom-line boost was magnified by an unusually low income tax provision, $27 million below the year-ago charge.
- These margins are about as good as any in the sector, and the net income take beats everybody from General Mills
(NYSE:GIS) to Kraft Foods(NYSE:KFT) , hands down.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$2,963 |
$2,727 |
8.7% |
|
Net Profit |
$321 |
$274 |
17.2% |
|
EPS |
$0.80 |
$0.68 |
17.6% |
|
Diluted Shares |
401.0 |
401.6 |
(0.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
42.7% |
43.9% |
(1.2) |
|
Operating Margin |
16.8% |
17.4% |
(0.5) |
|
Net Margin |
10.8% |
10.1% |
0.8 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$236 |
$261 |
(9.4%) |
|
Accounts Rec. |
$1,147 |
$1,028 |
11.6% |
|
Inventory |
$779 |
$706 |
10.3% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$942 |
$832 |
13.2% |
|
Long-Term Debt |
$3,052 |
$3,714 |
(17.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$355 |
$164 |
116.7% |
|
Capital Expenditures |
$66 |
$63 |
5.4% |
|
Free Cash Flow |
$289 |
$101 |
185.6% |
|
$342 |
$293 |
16.8% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Investing in Your Backyard: Michigan
- Organic Growth at Big Cheese
- A Food-Stock Sampler
- Foolish Fundamentals: Margins
Kraft is a Motley Fool Income Investor selection. Try any one of our investing services free for 30 days.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Anders Bylund had no position in any company mentioned, despite an addiction to s'mores-flavored Pop-Tarts. Fool rules are here.
