Kraft Heinz Co (NASDAQ:KHC) reported on Thursday a miss in third-quarter earnings per share while reporting a beat in revenue as organic sales growth was offset by higher overhead and input costs.
The company said EPS reached $0.78, compared with the year-ago mark of $0.83 and the average consensus of $0.81.
Revenue reached $6.37 billion, against the year-ago level of $6.31 billion and the consensus it would be at $6.31 billion.
“We believe that our Q3 results are strong evidence that our commercial investments are working, with solid top-line performance in the quarter,” said Kraft Heinz CEO Bernardo Hees.
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Shares of Kraft Heinz dropped 6.16% to trade at $52.74 in after-hours trade, having settled 2.2% higher on Thursday at $56.20.
"While a number of one-off factors — as well as our desire to insure customer service — held back profit in the quarter, we remain confident that we are well-positioned to deliver sustainable, profitable growth going forward,” said Hees.
The company said United States net sales were $4.4 billion, up 1.8% versus the year-ago period. Pricing decreased 2 percentage points, driven by increased in-store activity, particularly in natural cheese and ready-to-drink beverages, as well as commodity-driven pricing actions in bacon.
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Canada net sales were $525 million, 5.6% lower than the year-ago period, reflecting a negative 4.2 percentage point impact from currency and a 1.4% decline in Organic Net Sales. Pricing was 1.5 percentage points lower, as favorable pricing in foodservice was more than offset by stepped-up promotional expenses versus the year-ago period, the company said.
EMEA net sales were $629 million, down 3.3% versus the year-ago period, including a negative 1.9 percentage point impact from currency and a negative 2.0 percentage point impact from the divestiture of a joint venture in South Africa.
Rest of world net sales were $793 million, increasing 9.9% versus the year-ago period, including a negative 9.4 percentage point impact from currency and a 6.8 percentage point contribution from the Cerebos acquisition.
The Kraft Heinz Company is the fifth-largest food and beverage company in the world. It is based in Pittsburgh, Pennsylvania.
Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com