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Why Did Kellogg Have Weak Margins?

Why Did Kellogg Have Weak Margins?

Kellogg’s (K) profit margins continued to slide during the third quarter despite the company annualizing the downward adjustment in the pricing following the DSD (direct store delivery). Kellogg’s gross profit margins took a hit from the mix shift towards low margin markets and categories. The DSD transition remained a drag, while Multipro’s consolidation had a negative impact.