Kraft Heinz reports lackluster Q1 sales
15 May 2018 --- Kraft Heinz has reported its first-quarter 2018 results which show net sales dropped 0.3 percent to US$6.3bn in the three months to the end of March, while organic net sales fell 1.5 percent overall. The company behind brands like Heinz ketchup and Jell-O says its Q1 financial results reflect higher input costs, lower net sales in the US and investments to enhance capabilities, as well as lower taxes versus the prior year period.
“Our first-quarter results were consistent with, if not slightly better than, the expectations we expressed in February,” said Kraft Heinz CEO Bernardo Hees. “The initial successes we see in the marketplace, together with the strong investments we’re making in marketing, new product innovation, and capability-building, give us increased confidence in delivering the top- and bottom-line growth we expect in 2018.” Net sales were US$6.3 billion, which is down 0.3 percent versus the same period a year ago, including a 1.2 percentage point benefit from currency. Organic net sales decreased 1.5 percent versus a year ago, while pricing increased 1.0 percentage points, driven by price increases in the US and Rest of World markets. The Volume/mix decreased 2.5 percentage points, primarily driven by lower shipments in the US and Rest of World markets that more than offset solid retail growth in Canada and EMEA, as well as foodservice gains in the US and EMEA. Net income attributable to common shareholders increased to US$1.0 billion and diluted EPS increased to US$0.81, primarily reflecting benefits from US Tax Reform. Adjusted EBITDA decreased 2.6 percent versus a year ago to US$1.8 billion, including a favorable 0.9 percentage point impact from currency. Excluding the impact of currency, the decline in Adjusted EBITDA reflected higher input costs, lower volume/mix and investments in strategic initiatives. Adjusted EPS increased 6.0 percent to US$0.89, mainly reflecting lower taxes versus the prior year period, according to the company. US net sales were US$4.4 billion, down 3.3 percent versus the year-ago period. Pricing increased 0.8 percentage points as higher pricing was partially offset by the timing of trade spending versus the prior year period. Volume/mix decreased 4.1 percentage points as solid gains in foodservice and a favorable shift in Easter-related sales was more than offset by lower shipments of nuts, cold cuts, frozen potatoes and parts of the cheese business. US Segment Adjusted EBITDA decreased 5.6 percent versus the year-ago period to US$1.4 billion, primarily reflecting lower volume/mix, non-key commodity inflation and investments to enhance capabilities that were partially offset by gains from productivity and pricing. To contact our editorial team please email us at editorial@cnsmedia.com 
Related ArticlesFood Ingredients News Layn rolls out new sweetener platforms in Mexico
21 Sep 2018 --- Layn Corp. is rolling out its advanced sweetener and flavor systems in Mexico at the FoodTech Summit & Expo taking place in Mexico City September 26-27. The company is introducing its Lovia sweetener platform and showcasing Monk Fruit by Layn. Food Ingredients News Weekly Roundup: Nestlé sells Gerber Life Insurance, Givaudan completes Naturex acquisition
21 Sep 2018 --- In business news this week, Nestlé announced plans to sell Gerber Life Insurance Company, to Western & Southern Financial Group for US$1.55 billion in cash. Bösch Boden Spies launched a sustainability initiative and Givaudan completed the acquisition of Naturex, following the implementation of the squeeze-out procedure and the delisting of Naturex shares from the Euronext Paris stock exchange. Firmenich appointed Emmanuel Butstraen as president of its Flavors Business Unit and member of the company’s executive committee and Tyson Foods’ CEO Tom Hayes is stepping down. Food Ingredients News New taste platforms: Firmenich acquires US biotechnology company Senomyx
20 Sep 2018 --- Firmenich is set to acquire US biotechnology company Senomyx, Inc., which uses proprietary taste science technologies to discover, develop and commercialize novel flavor ingredients and natural high-intensity sweeteners for the food and beverage industries. The acquisition and a distribution deal should allow Firmenich, the world’s largest privately owned company in the flavor and fragrance business, to expand its influence on the global flavors market, particularly high-intensity sweeteners. Food Ingredients News Peeling back the label: UK study explores the “real” ingredients in popular processed foods
19 Sep 2018 --- A study examining the lack of meat in some processed foods and what UK consumers think is classified as “ultra-processed products” reveals a widespread lack of understanding. Less than half of those surveyed feel confident in pointing out which foods fall into the “processed” and “ultra-processed” categories. The study also revealed that many didn’t know the difference between processed foods like frozen vegetables or dried fruit which are not considered unhealthy and ultra-processed foods which contain additives and ingredients (often salt, fat and sugar) to enhance their flavor, texture, or longevity. Food Ingredients News FAO climate change and food security report: Where will global agriculture rise and decline by 2050?
18 Sep 2018 --- As climate change reshapes agriculture around the world, the international trade of agricultural products will be even more important to feed the growing global population, according to a new UN Food and Agriculture Organization (FAO) report which identifies where global harvests will rise and fall by 2050 and the “winners” and “losers” in farming as the planet warms in the coming years. |
