Third quarter Kraft Heinz, sales growth in all sectors
Up 6%, reached $ 6.44 billion thanks to "at home" consumption
The Kraft Heinz business report for Q3 2020 shows net sales growth across all six consumer platforms as families continue to eat and cook more at home. Thanks to sustained at-home consumption in the third quarter, the company saw its net sales rise 6% to $ 6.44 billion, with organic sales up 6.3%.
The owner of Heinz Ketchup and Philadelphia Cream Cheese reported operating income of approximately $ 1.15 billion, down 2.8%. In the United States, the company's largest market, organic sales for packaged foods and condiments increased 7.4 percent to $ 4.7 billion in the quarter.
Organic sales rose 4.6% relative to its international markets to $ 1.3 billion, while Kraft's Canadian business saw its organic sales drop 1% to $ 410 million.
The third quarter results come after the company was forced to write down several business units and brands, and after agreeing to sell its natural cheese business to Lactalis for $ 3.2 billion. The Group had to increase its marketing budget and review its supply chain. “We are optimistic about our short-term performance. We are moving into 2021 with our new fully implemented operating model, our platform strategy coming to life on the market and our ever-increasing investments for growth”, said Miguel Patricio , CEO of Kraft Heinz.
He added: "And although there are more future scenarios that we need to plan and manage, we are in a strong position to both accelerate and implement the strategic plan we finalized earlier this year." The company expects average-digit organic net sales growth for both the last quarter and the full year.
EFA News - European Food Agency