Kraft Heinz exceeds sales estimates on higher prices and robust demand

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Kraft Heinz Co posted fourth-quarter sales and profits that beat Wall Street expectations, boosted by higher product prices and buoyant demand for its packaged foods and condiments.

Packaged food makers have raised prices for their products to cope with soaring costs for everything from shipping and labor to raw materials such as wheat, meat and edible oils. .

Kraft Heinz has benefited significantly from strong demand for its snacks and other consumables during the pandemic, before which it battled weak sales and wrote down the value of several brands by billions of dollars in recent years.

The Chicago-based company, whose brands include Philadelphia Cream Cheese and Heinz ketchup, said it pushed prices up 3.8 percentage points in the quarter under review.

The reopening of restaurants and colleges after COVID-19 restrictions eased also helped bring Kraft’s restaurant business back to pre-pandemic levels, the company said.

Organic sales

Kraft also said it expects full-year organic sales to grow by a low single-digit percentage, compared to a 1.8% rise in 2021, pushing up prices. shares of the company by 1.9% before the bell.

The company reported a net loss attributable to common shareholders of $257 million (€226.02 million), or 21 cents per share, primarily due to non-cash impairments of $1.3 billion (€1). .1 billion euros). It reported net profit of $1.03 billion (910 million euros), or 84 cents per share, a year earlier.

Excluding items, Kraft earned 79 cents per share, beating the average analyst estimate of 63 cents.

Net revenue fell to $6.71 billion (5.9 billion euros) in the fourth quarter ended December 25, from $6.94 billion (6.1 billion euros) a year earlier, due to the impact of acquisitions and divestitures.

Analysts on average had expected sales of $6.61 billion (5.8 billion euros), according to Refinitiv IBES.

Read more: Kraft Heinz announces changes to the management team

News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to register ESM: European Supermarket Magazine.

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