• Net Sales (millions $)
    chart

    Net sales were strong again in 2009, despite the weak economy's pressure on consumers.

    Note: Fiscal years 2004 and 2008 include a 53rd week.
    (a) CAGR = compounded annual growth rate.

  • Operating Profit (millions $)
    chart

    Once again, we increased operating profit dollars while continuing to invest in our business and cost-savings programs.

    Note: Fiscal years 2004 and 2008 include a 53rd week.
    (a) CAGR = compounded annual growth rate.

  • EPS ($) (diluted)
    chart

    2009 EPS increased 6% over 2008, the 8th consecutive year of growth.

    Note: Fiscal years 2004 and 2008 include a 53rd week.
    (a) CAGR = compounded annual growth rate.

  • Cash Flow (b) (millions $)
    chart

    We have consistently delivered strong cash flow, and 2009’s $1.3 billion level is a record for Kellogg Company. In 2005 and 2008, the Company made voluntary pension contributions after-tax of $210 million and $300 million, respectively.

    Note: Fiscal years 2004 and 2008 include a 53rd week.
    (a) CAGR = compounded annual growth rate.
    (b) Cash flow is defined as net cash provided by operating activities less capital expenditures. The Company uses this non-GAAP financial measure to focus management and investors on the amount of cash available for debt repayment, dividend distributions, acquisition opportunities and share repurchase. Refer to Management’s Discussion and Analysis within the Form 10-K included herein for reconciliation to the most comparable GAAP measure.

  • Return On Invested Capital(c) (%)
    chart

    Our operating principles of Sustainable Growth and Manage for Cash combine to deliver continuous improvement in ROIC.

    Note: Fiscal years 2004 and 2008 include a 53rd week.
    (c) Return on Invested Capital = (Operating profit + Amortization expense – Income taxes) divided by the average of the beginning and ending balances of (Total equity + Current maturities of long-term debt + Notes payable + Long-term debt + Deferred income taxes + Accumulated amortization).

  • Dividends ($ per share)
    chart

    Dividends per share have increased 42% over the past 5 years.

    Note: Fiscal years 2004 and 2008 include a 53rd week.
    (a) CAGR = compounded annual growth rate.

 
CEO and Chairman of the Board

David Mackay
CEO

Jim Jenness
Chairman of the Board

Dear Shareowners,

In 2009, we delivered strong, high-quality results while continuing to build an even stronger Kellogg Company for the future.

Thanks to the hard work and passion of our 31,000 Kellogg employees around the world, the strength of Kellogg was demonstrated again in 2009 with another year of sustainable and dependable ­performance. By any measure, this was one of the most challenging operating environments in decades. However, we are pleased that despite the backdrop of a difficult economic environment and a tough competitive landscape, 2009 was a very good year for Kellogg. We once again delivered high quality results while building an even stronger company.

Kellogg grew internal net sales, operating profit and earnings per share at, or above, our long-term annual targets.

  • We posted 3 percent growth in Internal Net Sales, driven by a particularly strong year in cereal and a solid year in snacks.
  • We delivered a 10 percent improvement in Internal Operating Profit, reflecting the success of our cost ­savings and productivity initiatives.
  • We generated $3.16 Earnings per Share, a 13 percent increase on a currency-neutral basis.

We generated record cash flow of nearly $1.3 billion. We fulfilled our com­mit­ment of returning cash to shareowners by increasing our dividend by 10 percent and returning nearly three-quarters of a ­billion dollars through dividends and share repurchases.