Kraft Heinz Beats First-Quarter Revenue And Profit Estimates
The Kraft Heinz Company has beaten first-quarter revenue and profit estimates, driven by a year-long surge for the group's snacks and packaged meals.
“Our first quarter was better than expected, with our team delivering strong results on top of exceptional growth last year,” commented Kraft Heinz CEO Miguel Patricio.
The company's international markets, including UK, Australia and Latin America, which account for a fifth of its sales, saw a surge in demand as stuck-at-home consumers bought more condiments and sauces and boxed dinners.
Net sales rose to $6.39 billion (€5.27 billion) in the three months ended March 27, from $6.16 billion (€5.08 billion) a year earlier. Analysts had expected sales of $6.24 billion, according to IBES Refinitiv.
Net income attributable to the company rose to $568 million, or 46 cents per share, from $381 million, or 31 cents per share, a year earlier.
“Looking forward, we will continue to focus on leveraging our tremendous scale by investing to improve our capabilities and overall agility," said Patricio. "As we do, we believe we will come out of this period much stronger, operationally and financially, than we entered.”
Excluding items, Kraft Heinz earned 72 cents per share, beating analysts' average estimate of 59 cents.
For the second quarter of 2021, and based on performance to date, the company expects a mid-single-digit percentage increase in both organic net sales and constant currency-adjusted EBITDA versus the comparable 2019 period.