Advertisement
Advertisement

Kraft Heinz raises sales forecast on sustained packaged foods demand

By:
Reuters
Updated: Apr 27, 2022, 11:21 UTC

(Reuters) -Kraft Heinz Co on Wednesday raised its forecast for annual organic sales growth, benefiting from higher product prices and sustained demand for its packaged meals and condiments.

Bottles of Heinz Tomato Ketchup, owned by the Kraft Heinz Company, are seen for sale in Queens, New York

(Reuters) – Kraft Heinz Co on Wednesday raised its forecast for annual organic sales growth, benefiting from higher product prices and sustained demand for its packaged meals and condiments.

Packaged food makers including Kraft Heinz and Campbell Soup Co are still seeing strong demand for their quick-fix meals, sauces and cooking essentials that boomed in popularity during lockdowns.

The Philadelphia Cream Cheese maker forecast 2022 organic revenue growth of mid-single-digit percentage, compared with its prior outlook for a low-single-digit percentage increase.

In a further boost, consumers so far have not shown much resistance to price increases to combat a worldwide surge in costs of labor, raw material and freight. But Kraft Heinz stopped short of raising its core earnings forecast for 2022.

The company’s revenue fell to $6.05 billion in the first quarter ended March 26 from $6.39 billion a year earlier. Analysts on average had expected $5.83 billion, according to IBES data from Refinitiv.

(Reporting by Ananya Mariam Rajesh and Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath and Maju Samuel)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement