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Kellogg Impresses with 1Q18 Operating Margin Performance

Kellogg Impresses with 1Q18 Operating Margin Performance

Kellogg’s (K) gross profit margin continued to decline in 1Q18. Its gross profit margins decreased 120 basis points to 36.3% as benefits from improved volumes and cost-saving measures were more than offset by a list price adjustment due to its DSD (direct-store delivery) transition, which had an adverse impact of 125 basis points.