Foodservice

Kraft Heinz lifts Q2 2023 results boosted by price hikes

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August 2, 2023

Kraft Heinz Inc. lifted its earnings on higher sales for Q2 2023, supported by higher prices, according to an earnings report.

Highlights include:

• Net sales increased 2.6% from $6.5 billion in Q2 2022 to $6.72 billion for the quarter ending July 1, 2023, including a negative 1.2 percentage point impact from foreign currency and a negative 0.2 percentage point impact from acquisitions and divestitures.
• Organic net sales increased 4% percent. Price increased 11% versus the prior year period.
• Net income increased 277% from $265 million to $998 million in the comparative quarters, primarily driven by lapping non-cash impairment losses in the prior year period, higher adjusted EBITDA and unrealized gains on commodity hedges in the current year period compared to unrealized losses on commodity hedges in the prior year period.
• Diluted EPS rose 285.7% from 21 cents to 81 cents.
• Adjusted EPS rose 12.9% to 79 cents, primarily driven by higher adjusted EBITDA, lower taxes on adjusted earnings and lower interest expense.
• North America sales rose 0.8% from $5.04 billion to $5.08 billion.
• International sales rose 8.5% from $1.51 billion to $1.64 billion.

Shares traded today at $36.23 against a 52-week range of $32.73-$42.80.

The $6.72 billion in quarterly revenue missed analyst expectations by $80 million while the non-GAAP EPS of 79 cents beat expectations by 3 cents, according to Seeking Alpha.

"We delivered strong second quarter results, growing net sales, profits and profitability. This is consistent with our strategy to accelerate profitable growth," Miguel Patricio, CEO and board chair, said in the press release. "We grew across each of our three pillars: foodservice, emerging markets and U.S. Retail Grow Platforms."