Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Kraft Heinz plans more price hikes as sales, earnings beat estimates

By Deborah Mary Sophia and Mehr Bedi

(Reuters) -Kraft Heinz Co said on Wednesday it would raise the prices of its snacks and condiments further to counter soaring costs of raw materials and transportation, after posting quarterly earnings above market expectations.

Shares of the Chicago-based company rose as much as about 6% in morning trading.

Packaged food makers were among the biggest pandemic winners last year as stuck-at-home consumers stockpiled on frozen meals, sauces and soups.

A strained supply chain, however, has driven up freight and labor expenses and aggravated problems for companies like Kraft, Conagra and Kellogg that are grappling with surging costs of grains, meat and edible oils.

“Kraft Heinz is doing a better job of navigating rising costs and driving demand than we thought,” Edward Jones analyst John Boylan said, adding that the company has laid a good foundation by lowering costs and divesting sluggish businesses.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Kraft, whose brands include Philadelphia Cream Cheese and Heinz ketchup, said it raised prices by 3.8 percentage points in the fourth quarter when demand for its products was also robust. Margins in 2021, as a result, were higher than in pre-pandemic 2019.

The company expects inflation to be in the low-teens percentage range for 2022, with higher levels in the first half than in the second, said Chief Financial Officer Paulo Basilio.

Kraft also sees full-year organic sales growing by a low-single-digit percentage, compared with a 1.8% rise in 2021.

Its net sales declined 3.3% to $6.71 billion in the fourth quarter ended Dec. 25, owing to some acquisitions and divestitures, but beat the Refinitiv IBES estimate of $6.61 billion.

Excluding items, Kraft earned 79 cents per share, beating analysts’ average estimate of 63 cents.

(Reporting by Deborah Sophia and Mehr Bedi in Bengaluru; Editing by Ramakrishnan M.)

Recent Post: