Vending

Kraft Heinz boosts Q2 2022 sales, earnings take a hit

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February 14, 2023

Kraft Heinz Co. lifted its Q2 2022 sales, boosted by double digit organic sales growth while suffering a hefty earnings decline, according to an earnings report. Highlights include:

• Net sales increased 2.9%, from $6.3 billion in Q3 2021 to $6.5 billion in the quarter ending Sept. 24, 2022, including a negative 6.4 percentage point impact from divestitures and acquisitions and a negative 2.3 percentage point impact from currency. Organic net sales increased 11.6% versus the prior year period, while price increased 15.4 percentage points versus the prior year period, with growth in both reportable segments, which was primarily driven by price increases to mitigate rising input costs.
• Net income fell 40.8%, from $736 million to $435 million in the comparative quarters, primarily driven by higher non-cash impairment losses, unfavorable changes in other expense/(income) and lower adjusted EBITDA versus the prior year period. These factors were partially offset by lower interest expense primarily due to debt extinguishment costs in the prior year period.
• Diluted EPS fell 40.7%, from 59 cents to 35 cents in the comparative quarters, driven by the factors discussed above.
• Adjusted EPS fell 3.1%, from 65 cents to 63 cents primarily driven by lower adjusted EBITDA, including a negative impact from divestitures and an unfavorable impact from other expenses.
• North America net sales rose from $4.9 billion to $5.01 billion in the comparative quarters.
• International net sales rose from $1.38 billion to $1.48 billion.

Shares traded today at $39.88 against a 52-week range of $32.73-$44.87.

"We delivered another quarter of strong results as we continue to successfully navigate a volatile environment," Miguel Patricio, CEO and board chairman at Kraft Heinz Co., said in the press release. "We are driving net sales growth across both North America and international segments, fueled by each of our three pillars of growth: our GROW platforms in North America, foodservice and emerging markets. At the same time, the consumer remains our top priority."

The company continues to expect strong financial performance for 2022 and reaffirms 2022 organic net sales growth of a high-single-digit percentage increase versus the prior year period.