Kraft Heinz has seen its net sales increase by 0.7% in its second-quarter figures, thanks to a growth in emerging markets.
The company – which owns brands such as Oscar Mayer, Maxwell House and Philadelphia – recorded revenues of $6.69 billion for the three months to 30 June. Net income attributable to common shareholders fell by 34.8% to $756 million.
In the US, which accounts for two-thirds of the company’s business, net sales shrank by 1.9% to $4.51 billion. Sales in Canada were also down, in part due to a promotional activity last year which was not repeated.
However, in its Europe, Middle East and Africa unit and rest of the world division, revenues rose by 8.7% and 13.5% respectively, driven by growth in condiments and sauces.
Kraft Heinz CEO Bernardo Hees said: “Our results through the first half were stronger than the expectations we put forward as recently as three months ago, and we have been even more encouraged by our recent performance in the marketplace.”
“We believe we are now in a position to drive sustainable top-line growth from a strong pipeline of new product, marketing and whitespace initiatives that are backed by investments in capabilities for brand and category advantage.
“And while cost inflation on many fronts has been holding back our bottom line, we expect our profitability to improve by year-end, with further momentum into 2019.”
During the quarter, Kraft Heinz announced the five brands chosen to join its Springboard incubator programme.
The Chicago-headquartered firm also updated its sustainability goals as it aims to make 100% of its packaging recyclable, reusable or compostable by 2025. The company will work toward increasing the usage of recycled content in its packaging and decreasing the overall volume of packaging used.
© FoodBev Media Ltd 2020
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