Kraft Heinz Q1 2020 Earnings Report
Key Takeaways
Kraft Heinz reported strong Q1 2020 results with net sales up 3.3% to $6.2 billion and Organic Net Sales increasing 6.2%. This growth was primarily driven by increased consumer demand related to the COVID-19 pandemic. However, net income decreased by 6.7% to $378 million, and Adjusted EPS decreased by 12.1% to $0.58.
Net sales increased by 3.3% to $6.2 billion, driven by strong demand for leading brands.
Organic Net Sales grew by 6.2% due to increased consumer demand related to the COVID-19 pandemic.
Net income attributable to common shareholders decreased to $378 million, and diluted EPS decreased to $0.31.
Adjusted EPS decreased 12.1% to $0.58, primarily reflecting lower other income and unfavorable changes in non-cash equity award compensation expenses.
Kraft Heinz
Kraft Heinz
Forward Guidance
The impact of the COVID-19 pandemic on the Company’s full-year 2020 results remains uncertain. The Company believes low to mid-single-digit Organic Net Sales growth and mid-single-digit constant-currency Adjusted EBITDA growth versus the prior year period is a reasonable expectation for second quarter performance.
Positive Outlook
- Incremental demand from retail customers due to an increase in at-home consumption, particularly in developed markets is expected.
- Low to mid-single-digit Organic Net Sales growth is expected for the second quarter.
- Mid-single-digit constant-currency Adjusted EBITDA growth is expected for the second quarter.
Challenges Ahead
- The impact of the COVID-19 pandemic on the Company’s full-year 2020 results remains uncertain.
- Reduced demand in foodservice channels on a global basis is expected.