Kraft Heinz, a multinational food and beverage conglomerate, reported a 7.3% increase in its net sales for the first quarter, reaching $6.49 billion. This is a remarkable improvement from the sales decline of 5.5% that the company faced during the same period in the previous year.
In terms of organic growth, Kraft Heinz’s net sales surged by 9.4% in the first quarter, with a notable rise in pricing by 14.7 percentage points. This represents a significant improvement over the same period last year when net sales grew by 6.8% and pricing increased by 9 percentage points.
With higher adjusted EBITDA compared to the previous year and lapping non-cash impairment losses in the same period, Kraft Heinz experienced a 7.1% increase in net income, which amounted to $837 million.
During the same period last year, volume/mix was comparatively better, declining only by 5.3 percentage points, as opposed to the current quarter. The decline in both segments was mainly driven by elasticity impacts from pricing actions.
The parent company of Heinz Baked Beans and Philadelphia has reiterated its projection of achieving organic net sales growth between 4% and 6% for the year 2023, as compared to 2022.
Miguel Patricio, Kraft Heinz CEO, commented, “We delivered strong results in the first quarter of 2023, with net sales growth across both our North America and International zones that continues to be fueled by Foodservice, Emerging Markets, and US Retail Grow platforms. I am very proud of the entire Kraft Heinz team as we continue to deliver on what we can control by unlocking efficiencies and reinvesting in our brands and capabilities.”
He continued, “We remain committed to advancing our business transformation, and we are confident we have the right strategy in place to win with customers and consumers, and to deliver profitable growth and create value for our stockholders”.
