Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) reported first quarter results that surpassed analyst expectations for both earnings and revenue, even as underlying sales trends remained slightly weaker.
The packaged food company posted adjusted earnings per share of $0.58, ahead of the $0.50 consensus estimate, while revenue came in at $6.05 billion versus expectations of about $5.88 billion.
Net sales rose 0.8% year over year to $6 billion, supported in part by foreign currency benefits, though this was partially offset by divestitures.
Organic net sales declined 0.4% from the prior-year period, reflecting a 0.8 percentage point increase in pricing that was outweighed by a 1.2 percentage point decline in volume and mix. The company cited softness in coffee, cold cuts, and its Indonesia business as key drivers of the volume decline, alongside shifting Easter timing.
Operating income fell 4.3% to $1.1 billion, pressured by higher advertising spending, inflation in manufacturing and logistics costs, separation-related expenses, and restructuring charges. These headwinds were partially offset by gains from commodity hedges, pricing actions, and procurement-related recoveries.
On an adjusted basis, operating income declined 11.8% to $1.1 billion for similar reasons, with weaker volume and mix also contributing to the drop.
Kraft Heinz CEO Steve Cahillane said the results reflect early progress from the company’s recent investments. “Our first quarter results demonstrate steady progress, and I am encouraged by the early signs of momentum we’re building,” he said.
“The investments we made in 2025 are now driving early traction, with improving market share trends, particularly within must-win parts of our portfolio like Taste Elevation,” he said in the company’s earnings release. “This is proof that our brands respond well when we invest behind them.”
Shares of Kraft Heinz traded up 1.3% at about $23 following the report.