Kraft Heinz sales dip with some consumers swapping out brand name favorites
Sales slipped during the fourth quarter for Kraft Heinz as some customers, pinched by a bout of inflation, traded down to cheaper brands or did not buy as much.
A number of food makers, citing inflation, have raised product prices and that has helped preserve profits. But that can come at a cost to sales as some customers look for bargains elsewhere.
At Kraft Heinz, prices increased 3.7% and volumes slid 4.4%.
Last week PepsiCo, which makes snacks and drinks, experienced a similar trade-off after multiple price hikes and it posted a rare decline in revenue.
The Kraft Heinz Company on Wednesday reported fourth-quarter earnings of $757 million, or 61 cents per share. Earnings, adjusted for restructuring costs and non-recurring costs, came to 78 cents per share, edging past the 77 cents Wall Street was projecting, according to a survey by Zacks Investment Research.
The processed food company with dual headquarters in Pittsburgh and Chicago posted revenue of $6.86 billion, which fell shy of the $6.97 billion that industry analysts were looking for.
For the year, the company reported profit of $2.86 billion, or $2.31 per share. Revenue was reported as $26.64 billion.
Kraft Heinz expects full-year earnings in the range of $3.01 to $3.07 per share.