Kraft Heinz Co (NASDAQ:KHC, ETR:KHNZ) reported mixed results for the second quarter of 2024, with adjusted earnings slightly exceeding analyst expectations but revenue falling short.
The company also adjusted its sales growth outlook for the year, citing cautious consumer sentiment.
Kraft Heinz reported adjusted earnings of $0.78 per diluted share, down from $0.79 in the same quarter last year. This was above the $0.74 per share anticipated by analysts polled by Capital IQ.
Revenue for the quarter ended June 29 was $6.48 billion, compared with $6.72 billion a year earlier. Analysts had expected revenue to come in at $6.56 billion.
The company reaffirmed its full-year 2024 adjusted EPS guidance of $3.01 to $3.07, aligning with analysts' expectations of $3.01.
Kraft Heinz CEO Carlos Abrams-Rivera commented on the results, acknowledging that Q2 net sales growth came in lower than originally anticipated.
“While we are now expecting a more gradual top-line improvement in the back half of the year, we continue to unlock efficiencies that are allowing us to make accretive investments in our brands, grow profits, and drive future sales growth.”
Looking ahead, Abrams-Rivera expressed optimism for the latter half of 2024, highlighting several growth drivers.
“As we enter the second half of 2024, many drivers are giving us optimism for improved top-line trends. We are anticipating a continued ramp-up of both innovation and renovation, particularly in North America Retail, and we are increasing our marketing investment to continue to drive brand superiority across our portfolio.”
Analysts at Jefferies noted that consumer challenges continue to pressure Kraft Heinz’s top line and guidance.
“US consumer remains value-seeking, leading to lowered org guide for '24. That said, KHC beat on gross margin by nearly 100 bps and raised margin expansion outlook, which will be used to fund incremental brand support and price gap management.”
Kraft Heinz shares gained 3.8% at the open in New York.