Kraft Heinz Co beat market estimates for quarterly net sales as demand for snacks and packaged meals remained strong even as Americans started venturing out following the easing of coronavirus restrictions.
Packaged food companies have been among the major beneficiaries of the pandemic-induced curbs that forced people to cook more at home.
As the US economy revives, with a large number of people getting inoculated and as pandemic restrictions ease, food manufacturers are keenly observing consumer preference for home dining.
Net sales fell to $6.62 billion (€5.59 billion) in the second quarter from $6.65 billion (€5.62 billion) a year earlier, when people stockpiled essentials. Analysts were expecting net sales of $6.55 billion, according to IBES data from Refinitiv.
Kraft reported a net loss of $25 million, or 2 cents per share in the reported quarter, compared to a loss of $1.65 billion, or $1.35 per share, a year earlier. It incurred goodwill impairment losses of about $1.8 billion last year.
The company's board of directors have also announced a regular quarterly dividend of $0.40 per share of common stock payable on 24 September 2021, to stockholders of record as of 1 September 2021.
Kraft Heinz Outlook
Commenting on the company's performance, Kraft Heinz CEO Miguel Patricio, said, "Our second quarter results serve as a strong indicator that our Kraft Heinz team will not only deliver a stronger 2021 than we initially anticipated, but will come out of the global pandemic much stronger than we entered.
"We continue to drive our transformation program forward, modernising our brands and better connecting with our consumers. And while industry challenges, like cost inflation, certainly remain, the investments we are making in our people, brands, and capabilities are enabling us to leverage our tremendous scale through greater agility and build our advantage in the markets we serve around the world."
Kraft Heinz added that it expects a mid-single-digit percentage increase in organic net sales and a low-single-digit percentage decline in constant currency adjusted EBITDA in the third quarter. The estimate is in comparison with the third quarter of 2019.
In June, the company announced plans to purchase Assan Foods from the privately held Turkish conglomerate Kibar Holding in a deal that values the enterprise at approximately $100 million (€82.7 million).