Kraft Heinz delivers strong Q1 results, reaffirms full-year sales outlook

Kraft Heinz has reported a 7.3% increase in its first-quarter net sales to $6.49 billion, up from a 5.5% decrease in sales in the year-ago quarter.

On an organic basis, net sales grew 9.4%, with pricing up 14.7 percentage points, compared to net sales growth of 6.8% and pricing increase of 9 percentage points in the same period last year.

Net income increased 7.1% to $837 million, primarily driven by higher adjusted EBITDA versus the prior year period and lapping non-cash impairment losses in the same period.

Meanwhile, volume/mix declined by 5.3 percentage points versus the year-ago quarter, with declines in both segments primarily driven by elasticity impacts from pricing actions.

The owner of Heinz Baked Beans and Philadelphia reaffirmed its expectation of 2023 organic net sales growth of 4-6% versus 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”.