Kraft Heinz Q3 sales fall short of expectations | Progresiv

Kraft Heinz has reported a slight dip in sales for its fiscal third quarter, as it continues to face weaker demand for its products.

For the three months to 2 October, net sales were down 1.5% to 6.27 billion dollars (-1.0% on an organic basis, while the group swung to a net profit of 842 million dollars (from a loss of 168 million dollars last year). Both figures were calculated on a pro-forma basis.

Sales in the US were down 1.2% to 4.4 billion dollars, while Europe recorded a 14.5% drop to 513 million dollars (-7.8% organic). However, sales in Canada were up 2% to 550 million dollars, while the Rest of the World recorded a 4.4% increase to 809 million dollars (+3.6% organic).

Volume/mix was down 30bps primarily due to lower shipments across several categories, particularly cold cuts, foodservice and nuts in the US. The group said this was partially offset by growth driven by innovation in Lunchables and the macaroni and cheese portfolio, as well as gains in coffee (in the US) and in condiments and sauces (globally).

CEO Bernardo Hees noted: “Overall, our third quarter results are a good representation of where we are as a company. While our financial performance is respectable, we continue to have the opportunity to improve our offerings and retail execution in several key markets and take our brands to places they don’t currently compete.” (www.kamcity.com)