Kraft Heinz raises sales forecast on sustained packaged foods demand
(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.
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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)