Kraft Heinz has recorded net sales growth across all of its six consumer platforms, as people continue to eat and cook more at home.
Thanks to sustained at-home consumption in the third quarter, the company saw its net sales increase by 6% to $6.44 billion, with organic sales rising by 6.3%.
The owner of Heinz Ketchup and Philadelphia cream cheese posted operating income of approximately $1.15 billion, representing a decline of 2.8%.
In the US – the company’s biggest market – organic sales for its packaged food and condiments were up 7.4% to $4.7 billion for the quarter.
Organic sales rose 4.6% in its international markets to $1.3 billion, while Kraft’s Canadian business saw its organic sales decline by 1% to $410 million.
The third quarter comes after Kraft Heinz was forced to write down the value of several business units and brands and after it agreed to sell its natural cheese business to Lactalis for $3.2 billion, step up its marketing budget and overhaul its supply chain.
“We are building momentum, and we are confidently optimistic about our near-term performance. We are heading into 2021 with our new operating model fully implemented, our platform strategy coming to life in the marketplace, and our growth investments ramping up,” said Kraft Heinz CEO, Miguel Patricio.
He added: “And although there are multiple future scenarios we must plan for and manage against, we are in a strong position to both accelerate and exceed the strategic plan we finalised earlier this year.”
Kraft Heinz has raised its outlook and expects mid-single-digit organic net sales growth for both its final quarter and the full year.
© FoodBev Media Ltd 2020