Kraft Heinz beats third-quarter estimates, reaffirms full-year sales outlook

Kraft Heinz has reported a 2.9% increase in third-quarter net sales and reaffirmed its full-year outlook for organic sales growth. 

The owner of Heinz ketchup and baked beans said that the “strong results” were fuelled by the company’s three pillars of growth, including foodservice and emerging markets.

Kraft Heinz’s Q3 net sales rose to $6.51 billion. Analysts on average had expected $6.27 billion, according to Refinitiv IBES data, cited by Reuters.

On an organic basis, sales rose by 11.6%. Net income decreased 40.8% to $435 million, primarily driven by higher non-cash impairment losses versus the year-ago period. 

Price increased 15.4 percentage points versus Q3 2021 to mitigate rising input costs, and “higher pricing and efficiency gains…more than offset higher supply chain costs,” according to Kraft Heinz.

Miguel Patricio, Kraft Heinz CEO, commented on the results: “As we continue to successfully navigate a volatile environment, the consumer remains our top priority. We’re dedicated to providing solutions for consumers by leveraging the power of our brands to deliver on value at a time when consumers need it most.”

He continued: “I’m very proud of what we have been able to deliver thus far, but our work continues. We remain focused on advancing our long-term strategy and believe we are well-positioned to drive profitable growth and generate attractive returns for our stockholders.”

Kraft Heinz reaffirmed its expectation of “high-single-digit” organic net sales growth for the full year.

Meanwhile, the company has raised the lower end estimate for 2022 adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) from at least $5.8 billion to $5.9 billion.

Due to the potential impact of supply chain challenges faced by the industry, the company anticipates coming in at the lower end of the new adjusted EBITDA range.