Vending

Kraft Heinz reports 3.3% Q1 net sales gain

Logo provided.

May 1, 2020

The Kraft Heinz Company reported net sales increased 3.3% in the first quarter, which reflected higher net sales and organic net sales growth due to strong demand for its leading brands, as well as the impact of divestitures, unfavorable currency and higher costs versus the prior year, according to a press release.

Net sales were $6.2 billion, up 3.3% versus the year-ago period, despite a negative 1.8% impact from divestitures and an unfavorable 1.1% impact from currency.

Organic net sales increased 6.2% versus the year-ago period, due to approximately 6 to 7 percentage points of growth as a result of increased consumer demand related to the COVID-19 pandemic. Pricing increased 1.6% versus the prior year period, as higher pricing in the U.S. and international segments more than offset lower pricing in Canada. Volume/mix grew 4.6% compared to the prior year period, as growth in at-home consumption more than offset an unfavorable impact from retail inventory reductions and lower foodservice shipments versus the prior year period.

Net income attributable to common shareholders decreased to $378 million and diluted EPS decreased to $0.31 mainly due to an unfavorable comparison with a gain on the sale of the India nutritional beverages business in the prior year period and an unrealized loss on commodity hedges in the current period that were partially offset by the favorable impact of lower non-cash impairment charges in the current period.