Kraft Heinz has reported strong first-quarter financial results, buoyed by higher prices on the grocery shelves.
During the three-month period ended April 1, 2023, net sales increased 7.3% over the same year-ago period to $6.5 billion, with organic net sales up 9.4%.
Kraft Heinz CEO Miguel Patricio said the results were driven by Foodservice, Emerging Markets, and US Retail GROW platforms across North America and International zones.
The growth was primarily due to list price increases, though the company noted a decline in volume/mix due to elasticity impacts from pricing actions.
Net income increased 7.1% to $837 million, with adjusted earnings per share (EPS) of $0.68, up 13.3% year-over-year.
Looking forward, Kraft Heinz is raising its adjusted EPS guidance for the 2023 financial year to be in the range of $2.83 to $2.91. Organic net sales are expected to grow by 4% to 6% versus 2022.
The firm added that it expects to see “high single-digit inflation” for the rest of the year.
Shares of Kraft Heinz rose around 3.8% on Wednesday morning in New York.
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