Financial Results Net Sales and Operating Profit

North America

Reported net sales decreased 2.3% versus the prior year as positive price/mix was more than offset by the negative impact on volume of supply disruptions, including the fourth-quarter labor strike in our cereal plants and third-quarter fire at one of the facilities, as well as the impact of lapping the 53rd week.

Organic net sales decreased 1.1% after excluding the impact of the 53rd week and foreign currency. North America snacks net sales increased 5.5% led by consumption growth in each of our three major categories, crackers, salty snacks, and portable wholesome snacks. North America cereal net sales decreased 14% as it lapped strong prior year pandemic-related growth and experienced challenging supply conditions including a labor strike in our U.S. cereal plants and a fire at one of those facilities.

Europe

Reported net sales increased 7.4% driven by both volume and price/mix, as well as favorable foreign currency translation. Organic net sales increased 4.2% after excluding the impact of the 53rd week and foreign currency.

Cereal net sales declined due to lapping a pandemic-related surge in consumption growth during the prior year, partially offset by favorable foreign currency translation and notably strong share gains in the UK. Snacks net sales growth was led by sustained momentum in Pringles, driven by innovation, effective advertising, and successful consumer promotions.

Reported operating profit increased 16% due primarily to higher net sales and favorable foreign currency translation partially offset by lapping unusually high operating leverage during the onset of the pandemic. Currencyneutral adjusted operating profit increased 6.8% after excluding the impact of foreign currency, and business and portfolio realignment.

Latin America

Reported net sales increased 9.0% driven by both volume and price/mix, and with broad-based growth across the region, led by snacks, and favorable foreign currency translation. Organic net sales increased 7.4%, after excluding the impact of foreign currency. Snacks net sales growth was led by sustained consumption growth and share gains in key markets for salty snacks and share gains in portable wholesome snacks.

Cereal net sales increased due to share gains in key markets, including Mexico, Puerto Rico and Brazil, despite the lapping of a pandemic-related surge in consumption in the prior year. Reported operating profit increased 13% due to higher net sales and favorable foreign currency translation partially offset by input cost inflation. Currency-neutral adjusted operating profit increased 7.5% after excluding the impact of mark-to-market and foreign currency.

Amea

Reported net sales increased 16% driven by both volume and price/mix, and with broadbased growth across the region and categories. Organic net sales also increased 18%.

Noodles and other net sales increased lead by strong growth from Multipro as well as our Kellogg’s branded noodles business. Snacks net sales increased due primarily to strong growth in Pringles across the region. Cereal net sales growth was driven by broad- based growth across Asia and Australia. Reported operating profit increased 22% due primarily to operating leverage from higher net sales and the lapping of prior year business and portfolio realignment charges. Currencyneutral adjusted operating profit increased 12%, after excluding the impact of business and portfolio realignment, and foreign currency.

Corporate

Reported operating profit increased $30 million versus the comparable prior year period due primarily to favorable markto-market impact and lower incentive compensation expense. Currency-neutral adjusted operating profit increased $41 million from the prior year after excluding the impact of mark-to-market.