BATTLE CREEK, MICH. — Despite weak volume trends, top executives of WK Kellogg Co said the company was solidly on course for achieving its guidance for 2024 financial results.

“We’re on track in delivering on our commitments,” said Gary H. Pilnick, chairman and chief executive officer.

WK Kellogg net income in the quarter ended March 30 was $33 million, equal to 38¢ per share on the common stock, up 38% from $24 million, or 28¢ per share, in the first quarter last year. Net sales were $707 million, down 1.8% from $720 million a year earlier. The company said adjusted net sales were down 0.8%.

In trading May 7 on the New York Stock Exchange, shares of WK Kellogg climbed 3.1%, to close at $24.27 per share.

“Our strategy is clear, our integrated and engaged team is working end-to-end, and we are pleased with our progress as we continue to execute our strategic priorities,” Pilnick said. “We’ve started 2024 delivering first-quarter financial results in line with our expectations, and we are on track for the year.”

The improved earnings in the first quarter were attributed by the company to the benefits of revenue growth management and “increasing levels of operational effectiveness within our supply chain.”

Of the lower sales, WK Kellogg said price/mix was a 6.3% positive while volume was down 7%.

“Price elasticities contributed to our volume decline in the quarter,” the company said.

For the full year, WK Kellogg is projecting net sales change of -1% to 1% from 2023. Adjusted EBITDA growth is forecast to be 3% to 5%.

In remarks during a May 7 conference call with investment analysts, Pilnick reminded his audience that the company’s objectives are maintaining a stable top line while expanding EBITDA margins by 500 basis points by the end of 2026.

“(We) will deliver significant value for our stakeholders by growing our margin from 9% to 14%, while maintaining our top line,” he said.

He noted that the sales decrease of 0.8% was not only in line with the company’s full-year guidance but represented a sequential improvement from the final quarter of 2023, when net sales fell 2.7% and volume was down 10.1%.

Pilnick said the cereal category overall was essentially flat in the first quarter, a sequential improvement from the fourth quarter.

“Our performance in the US lagged the category slightly as we continue to see the impact of our 2023 list price increase, which we did not fully lap until March,” he said. “We are pleased with the performance of our core portfolio of iconic brands. Four of our core six brands grew in the quarter despite the headwind from lapping price and our Canada team delivered excellent results, growing 4.6% during the quarter and extended our category-leading share.”

David McKinstray, chief financial officer, said the improving trend in volume was due “in part to the lower impact of price elasticities as we lapped our last major price increase.”

“In the US, Frosted Flakes along with Raisin Bran and Rice Krispies were three of our fastest-growing brands in the first quarter,” McKinstray said. “In Canada, the business continued its strong performance behind brands like Frosted Flakes and Mini-Wheats.”

On a 12-month basis, the company’s EBITDA margin improved 180 basis points to 9.8%.