Vending

Kraft Heinz lifts Q3 2022 sales on pricing gains, earnings slide

Image provided by iStock.

October 26, 2022

Kraft Heinz Inc. lifted its Q3 2022 sales driven by price hikes while earnings took a dive, according to an earnings release. Highlights include:

Net sales increased 2.9%, from $6.32 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. Prices increased 15.4 percentage points versus the prior year period, with growth in both reportable segments that was primarily driven by price increases to mitigate rising input costs.
Net income decreased 40.8%, from $736 million to $435 million, primarily driven by higher non-cash impairment losses, unfavorable changes in other expenses, and lower adjusted earnings before interest, taxes, depreciation and amortization versus the prior year period.
Diluted EPS fell 40.7%, from 59 cents to 35 cents, driven by the factors discussed above.
Adjusted EPS fell 3.1%, from 6.5 cents to 63 cents, primarily driven by lower adjusted EBITDA.

Shares traded today at $37.15 against a 52-week range of $32.73-$44.87.

The $6.5 billion in quarterly revenue beat analyst expectations by $210 million, while the non-GAAP EPS of 63 cents beat expectations by 7 cents, according to Seeking Alpha.

"We delivered another quarter of strong results as we continue to successfully navigate a volatile environment," Miguel Patricio, chairman and CEO, 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."

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