Kellogg's Annual Report 2008
KELLOGG COMPANY TWO THOUSAND AND EIGHT ANNUAL REPORT WHAT MAKES ® ™ At Kellogg Company, we have: • For more than a century, Kellogg Company has been dedicated to producing great-tasting, high-quality, nutritious foods that consumers around the world know and love. With 2008 sales of nearly $13 billion, Kellogg Company is the world’s leading producer of cereal, as well as a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles and vegetarian foods. We market more than 1,500 products in over 180 countries, and our brands include such trusted names as Kellogg’s, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Morningstar Farms, Famous Amos, Special K, All-Bran, Frosted Mini-Wheats, Club, Kashi, Bear Naked, Just Right, Vector, Guardian, Optivita, Choco Trésor, Frosties, Sucrilhos, Vive, Muslix and Zucaritas. Kellogg products are manufactured in 19 countries around the world. We enter 2009 with a rich heritage of success and a steadfast commit- ment to continuing to deliver sustainable and dependable growth in the future. TWO 2008 ANNUAL REPORT A commitment ™ to sustainable and dependable GROWTH ™ 2008 FINANciaL HigHLigHTS / DELIVERING STRONG RESULTS (dollars in millions, except per share data) 2008 Change 2007 Change 2006 Change Net sales $ 12,822 9% $ 11,776 8% $ 10,907 7% Gross profit as a % of net sales 41.9 % (2.1 pts) 44.0 % (0.2 pts) 44.2 % (0.7 pts) Operating profit 1,953 5% 1,868 6% 1,766 1% Net earnings 1,148 4% 1,103 10% 1,004 2% Net earnings per share Basic 3.01 8% 2.79 10% 2.53 6% Diluted 2.99 8% 2.76 10% 2.51 6%(b) Cash flow (net cash provided by operating activities, reduced by capital expenditure)(a) 806 (22%) 1,031 8% 957 24% Dividends per share $ 1.30 8% $ 1.20 5% $ 1.14 8% (a) Cash flow is defined as net cash provided by operating activities, reduced by capital expenditures.
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