Kraft Heinz saw a 7.1% decline in Q4 net sales, dropping to over $6.8 billion from $7.3 billion in the corresponding period last year.
In the quarter, organic net sales dipped by 0.7%, despite a 3.7% uptick in pricing, largely due to list price adjustments aimed at offsetting escalating input expenses. Nevertheless, Q4 witnessed a 4.4% drop in volume/mix across both reportable segments, mainly attributable to pricing maneuvers and industry-wide obstacles.
Meanwhile, the proprietor of Heinz Ketchup and Philadelphia cream cheese disclosed a 0.6% rise in full-year net sales, reaching $26.6 billion. Prices surged by 8.9%, while volume/mix dwindled by 5.5%.
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Kraft Heinz CEO Carlos Abrams-Rivera said, “I’m proud of the results we delivered in 2023 and the progress we’ve made as a company throughout the year. We delivered net sales growth across each of our key pillars, global foodservice, emerging markets, and US ‘Retail Grow’ platforms. We laid out action plans early in 2023 to drive market share and volume improvement – and they worked. We also executed well against our efficiency programme, unlocking and powering it in large part with our tech-enabled Agile@Scale methodology.”
“Thanks to these digital advancements and new ways of working, we were able to reinvest dollars across the business to drive future growth. We also strengthened our balance sheet, ending the year at our target Net Leverage of approximately 3.0x, while executing against our new share repurchase program and maintaining a competitive dividend.”
He continued, “In the fourth-quarter, the industry faced headwinds that were driven by ongoing consumer pressure. Looking ahead, we expect some of these pressures to dissipate, particularly as the reduction in Snap benefits is lapped”.
“For 2024, we expect continued growth for Kraft Heinz. We’ll keep a strong focus on execution against our strategy, supported by investments we’re making in our brands and our people. We’re confident we have the right strategy in place to deliver profitable growth and create value for our stockholders.”
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