Kraft Heinz leans on higher pricing in topping earnings estimates
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Kraft Heinz Company (NASDAQ:KHC) moved higher in early trading after sailing past consensus marks with its Q4 earnings report as pricing was used to mitigate inflationary pressures.
Organic revenue rose 3.9% during the quarter vs. +6% a year ago. The organic sales tally beat the consensus expectation for a gain of just +0.2%.
Organic revenue was up 3% in the U.S. and increased 3.4% in Canada.
Pricing was up 3.8 percentage points for Kraft (KHC) compared to a year ago period with growth across each reporting segment that primarily reflected inflation-justified price increases in foodservice and retail channels. Volume/mix was essentially flat versus the year-ago period as benefits from continued recovery in foodservice channels were offset by a combination of comparisons with extraordinary COVID-19-related retail demand in 2020 and temporary supply constraints.
Adjusted EBITDA came in at $1.61B vs. $1.79B a year ago.
Looking ahead, Kraft Heinz (KHC) guides for a low-single-digit percentage increase in organic net sales and adjusted EBITDA of $5.8B to $6.0B.
Shares of Kraft Heinz (KHC) rose 1.64% in premarket trading following the earnings topper.