Kraft Heinz posts net sales decline in Q1, raises organic sales expectations

Kraft Heinz has reported a 5.5% decrease in its first-quarter net sales to $6.05 billion, reflecting the impact of divestitures and currency.

On an organic basis, net sales grew 6.8%. Pricing was up 9 percentage points versus the year-ago period, as the company took action to mitigate rising input costs.

Meanwhile, volume/mix declined by 2.2 percentage points, reflecting supply constraints that were partially offset by strong demand for products in retail and continued recovery in foodservice channels.

The owner of Philadelphia cream cheese is raising its expectations for 2022 organic net sales growth to a mid-single-digit percentage increase, reflecting “strong performance to date, ongoing business momentum and additional pricing actions to mitigate ongoing inflation”.

Miguel Patricio, Kraft Heinz CEO, commented: “Our first quarter was a strong start to the year and yet another period where our team rose to mitigate new and different macro environment challenges”.

“We continue to build critical capabilities, greater corporate agility and additional financial flexibility to address short-term turmoil while building our long-term advantage. We still have work to do, more opportunity ahead and we remain confident in our ability to deliver our plan for the year as well as our long-term growth strategy.”