Foodservice

Kraft Heinz reports Q3 2023 sales gain, income dip

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November 1, 2023

Kraft Heinz Inc. reported a Q3 2023 sales gain and an income dip against the prior year period, according to an earnings report. Highlights include:

Net sales increased 1% from $6.5 billion in Q3 2022 to $6.57 billion in the quarter ending Sept. 30, 2023, including a negative 0.5 percentage point impact from foreign currency and a negative 0.2 percentage point impact from divestitures. Organic net sales increased 1.7%.
Net lncome decreased 41.7% from $435 million to $254 million, primarily driven by higher non-cash impairment losses in the current year period and higher tax expenses in the current year period.
EPS fell 40% from 35 cents on both a basic and diluted basis.
Adjusted EPS rose 14.3% to 72 cents, primarily driven by higher adjusted EBITDA and favorable changes in other income and expenses.
North America net sales fell from $5 billion to $4.9 billion.
International net sales rose from $1.49 billion to $1.57 billion.

Shares traded today at $32.42 against a 52-week range of $30.68 to $42.80.

The $6.57 billion in quarterly revenue missed analyst expectations by $130 million, while the Q3 non-GAAP EPS of 72 cents beat expectations by 6 cents, according to Seeking Alpha.
The company declared a 40-cent dividend payable on Dec. 29 for shareholders of record Dec. 1.

"Our third quarter results were marked by net sales growth across each of our three core pillars: foodservice, emerging markets and U.S. retail grow platforms," Miguel Patricio, CEO and board chair, said in the release. "At the same time, we continue to improve productivity across the value chain, reinvesting gross efficiencies back into marketing, technology and research and development."

For the full year, the company expects organic net sales growth of 4% to 6% versus the prior year, closer to the lower end of the range at approximately 4%.

Adjusted EPS is expected in the range of $2.91 to $2.99, compared to the previous expected range of $2.83 to $2.91.