Market Share LossesMarket share declines suggest that the spin-off has not yet improved the company's competitiveness in the structurally declining breakfast cereal category.
Organic Sales DeclineOrganic sales declined 5.6% and share declined owing to consumers shifting to healthier options and value shopping.
Sales And EBITDA Guidance CutManagement lowered sales guidance by 100-200 bps to -2% to -3%, and EBITDA growth by 600 bps to -2% to 0%.
Weak Earnings VisibilityEarnings visibility is low as weak category trends and ongoing market share losses may hinder KLG's ability to execute on margin expansion targets.