CHICAGO — On the eve of a shareholder vote on its planned acquisition by Mars Inc., Kellanova turned in a fiscal 2024 third-quarter performance that chairman, president and chief executive officer Steven Cahillane said shows the company is now “executing at a high level.”

Net income for the quarter ended Sept. 28 rose 36% to $367 million, equal to $1.05 per share on the common stock, from $269 million, or 78¢ per share, a year earlier. Chicago-based Kellanova said the gain reflects higher operating profit and a positive swing in one-time tax items.

Adjusted earnings per share were 91¢ for the quarter (92¢ excluding the impact of foreign exchange), compared with 77¢ in the prior-year period. Analysts, on average, had projected adjusted EPS of 85¢ per share, with estimates ranging from 82¢ to 89¢.

Operating income climbed 10.3% year over year to $456 million from $414 million. Kellanova attributed the increase to a favorable swing in net mark-to-market, further gross profit margin improvement and reimbursement for transition services provided to WK Kellogg Co, partially offset by charges related to network optimization projects and the proposed Mars merger. Adjusted operating profit excluding foreign exchange was $453 million, up 19% from $380 million a year ago.

At the top line, third-quarter net sales dipped 0.7% to $3.23 billion from $3.26 billion a year ago, when results declined 0.2%. Kellanova said “significantly adverse foreign currency translation” trimmed reported net sales growth, partially offset by higher price/mix and volume. However, organic net sales climbed 6.1% to $3.45 billion from $3.26 billion, well above the prior-year gain of 3.9% and marking the largest quarterly increase thus far in fiscal 2024.

Kellanova noted that the organic sales growth was “above its long-term target range.”

In North America, operating profit grew 24% to $297 million in the third quarter from $240 million in the year-ago period. On an adjusted basis and excluding foreign exchange, operating income was up 27% to $312 million from $245 million.

Kellanova saw reported and organic net sales for North America edge up 1.1% in the quarter to $1.67 billion from $1.65 billion a year earlier, when results ticked down around 0.3%. The company said sales for the region reflected a positive price/mix but a slight decrease in volume. Organic sales of snacks rose 1.8% year over year, while frozen food sales were down 2.2%.

“Our strong third-quarter results reflect once again our strategy and more growth-oriented and profitable portfolio as Kellanova,” Cahillane said, referring to the company’s October 2023 spinoff from Kellogg Co., which also formed WK Kellogg Co. “This performance is also a testament to the talent and engagement of a Kellanova organization that is executing at a high level as we prepare for our exciting next chapter as part of a global snacking powerhouse with Mars.”

When reporting third-quarter results on Oct. 31, Kellanova said it wouldn’t be providing forward-looking guidance or holding its quarterly analyst call because of the pending acquisition by Mars. Kellanova shareholders are scheduled to vote on the $35.9 billion deal in a special meeting on Nov. 1.

Under the transaction, unveiled Aug. 14, McLean, Va.-based Mars agreed to buy Kellanova for $83.50 per share in cash. Kellanova said the agreement — which will take publicly held Kellanova private into family-owned Mars — is still expected to close in the first half of 2025, pending shareholder approval, regulatory clearance and other customary closing conditions.

Plans call for Kellanova to be integrated into Mars Snacking, led by global president Andrew Clarke and based in Chicago. The transaction would plant Mars — known mainly for candy and chocolate brands like Snickers, M&M’s, Mars, Twix, Dove, Milky Way, 3 Musketeers, Skittles, Extra, Wrigley’s Doublemint, Life Savers and Starburst — in the cracker, salty snacks, bar and breakfast sections of the grocery store. The product roster for Kellanova spans a host of popular brands, led by Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain, RxBar and, in the frozen breakfast category, Eggo.