Kraft Heinz Co (NASDAQ:KHC) fell in morning trading after the packaged food company formed last month by the merger of ketchup maker H.J. Heinz Co and Kraft Foods Group Inc said sales fell 4.9 percent at Kraft and 4.1 percent at ketchup maker Heinz in the last quarter before the merger was completed.
Shares dropped 2 percent to $77.26 at 0:33 a.m. in New York.
Kraft’s revenue fell to $4.52 billion, from $4.75 billion, while Heinz’s revenue fell to $2.62 billion, from $2.73 billion.
Sales at Kraft fell because of weak demand for its beverages, while the strong dollar hurt sales at Heinz.
Kraft’s net income improved to $551 million, or $0.92 per share, in the second quarter, which ended June 27, from $482 million, or $0.80 per share, a year earlier.
Heinz's net loss expanded to $344 million or $0.91 per share, compared with a loss of $53 million or $0.14 per share last year.
The results mark the company's first since it merged earlier this year.
"The company is focused on the difficult and challenging process of integrating our two businesses," Kraft Heinz's chief executive, Bernardo Hees, said in a statement late yesterday.
H.J. Heinz, backed by Warren Buffett’s Berkshire Hathaway and the Brazilian private equity firm 3G Capital, combined with Kraft Foods in July to create the third-largest North American food company.