August 2, 2023 [crocon media – msch] The Kraft Heinz Company, a titan in the food industry, has recently reported its financial results for the second quarter of 2023. The results are promising, showing a robust growth trajectory that is expected to continue in the coming months.
The company’s net sales have seen a 2.6% increase, reaching $6.7 billion, despite the negative impact from foreign currency and acquisitions and divestitures. Organic net sales have grown by 4.0%, primarily driven by list price increases. This growth has been seen across all three of Kraft Heinz’s pillars: Foodservice, Emerging Markets, and U.S. Retail Grow Platforms.
The company’s net income has also seen a significant increase of 277.0%, reaching $998 million. This is primarily due to lapping non-cash impairment losses from the previous year, higher Adjusted EBITDA, and unrealized gains on commodity hedges.
Despite facing headwinds, particularly in the U.S. market share performance, the company’s action plans have resulted in share trend improvement each month. These plans, coupled with strong execution from the teams, are expected to drive momentum through the second half of the year.
Looking ahead, the company expects organic net sales growth of 4 to 6 percent for the fiscal year 2023. Adjusted Gross Profit Margin is expected to expand by 150 to 200 basis points, reflecting mid-to-high single-digit inflation for the full year.
The company’s Board of Directors has also declared a regular quarterly dividend of $0.40 per share of common stock, further solidifying its commitment to delivering value to its shareholders.
In conclusion, Kraft Heinz’s recent performance and future prospects make it a flavorful investment for those looking to add a dash of growth and stability to their portfolio. The company’s strategic investments in marketing, research & development, and technology, funded through gross efficiencies, are setting the stage for a promising future.
Read the original press release : https://www.businesswire.com/news/home/20230802747866/en/Kraft-Heinz-Reports-Second-Quarter-2023-Results
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