Kraft Heinz Raises Sales Outlook as Prices Soar
Kraft Heinz now expects better sales for its products for the year.
Photo:
Gabby Jones/Bloomberg News
Kraft Heinz Co.
KHC -7.79%
raised its sales outlook for the year after higher prices lifted second-quarter revenue at a double-digit rate even as it sold fewer items.
Overall sales fell 0.9% to $6.55 billion, primarily due to divestitures and currency effects. Excluding those, the company said organic sales rose 10.1% in the period, with higher prices contributing 12.4 percentage points to the top line as the food giant sought to offset escalating costs. Sales topped analyst expectations for nearly $6.4 billion, according to FactSet.
Like other food makers, Kraft Heinz has been battling growing supply-chain challenges and steep cost inflation on key food commodities for months. The rising food prices are contributing to inflation levels that have hit the highest level in more than four decades.
The higher prices are having an impact on sales volume, which Kraft Heinz said was down 2.3%. Supply-chain constraints were also a contributing factor for the decline, the company said.
Kraft Heinz now expects better sales for the year, as it raised its forecast for organic sales to rise at a high-single-digit rate, compared to its previous view for a mid-single-digit increase.
For the period ended June 25, the company reported profit of $265 million, or 21 cents a share, compared with a loss of $27 million, or 2 cents, in the same quarter last year.
Stripping out currency effects, unrealized losses on commodities and other one-time items, Kraft Heinz reported adjusted earnings of 70 cents a share, 2 cents above analyst expectations, according to FactSet.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Kraft Heinz now expects better sales for its products for the year.
Photo:
Gabby Jones/Bloomberg News
Kraft Heinz Co.
KHC -7.79%
raised its sales outlook for the year after higher prices lifted second-quarter revenue at a double-digit rate even as it sold fewer items.
Overall sales fell 0.9% to $6.55 billion, primarily due to divestitures and currency effects. Excluding those, the company said organic sales rose 10.1% in the period, with higher prices contributing 12.4 percentage points to the top line as the food giant sought to offset escalating costs. Sales topped analyst expectations for nearly $6.4 billion, according to FactSet.
Like other food makers, Kraft Heinz has been battling growing supply-chain challenges and steep cost inflation on key food commodities for months. The rising food prices are contributing to inflation levels that have hit the highest level in more than four decades.
The higher prices are having an impact on sales volume, which Kraft Heinz said was down 2.3%. Supply-chain constraints were also a contributing factor for the decline, the company said.
Kraft Heinz now expects better sales for the year, as it raised its forecast for organic sales to rise at a high-single-digit rate, compared to its previous view for a mid-single-digit increase.
For the period ended June 25, the company reported profit of $265 million, or 21 cents a share, compared with a loss of $27 million, or 2 cents, in the same quarter last year.
Stripping out currency effects, unrealized losses on commodities and other one-time items, Kraft Heinz reported adjusted earnings of 70 cents a share, 2 cents above analyst expectations, according to FactSet.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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