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Mar 26, 2022
Kraft Heinz Q1 2022 Earnings Report
Kraft Heinz's first quarter performance in 2022 reflected strong price realization, resilient retail demand, and foodservice growth.
Key Takeaways
Kraft Heinz reported a decrease in net sales by 5.5% to $6.0 billion, but organic net sales increased by 6.8%. Net income increased by 37.5% to $781 million, while Adjusted EBITDA decreased by 15.1% to $1.3 billion. The company is raising its full-year outlook for organic net sales growth.
Net sales decreased 5.5 percent versus the year-ago period to $6.0 billion.
Organic Net Sales increased 6.8 percent versus the prior year period.
Net income increased 37.5 percent versus the year-ago period to $781 million.
Adjusted EBITDA decreased 15.1 percent versus the year-ago period to $1.3 billion.
Forward Guidance
The Company continues to expect strong financial performance in 2022. The Company is raising expectations for 2022 Organic Net Sales to a mid-single-digit percentage increase versus the prior year period and continues to expect Adjusted EBITDA to be in the range of $5.8 billion to $6.0 billion.
Positive Outlook
- Strong performance to date
- Ongoing business momentum
- Additional pricing actions to mitigate ongoing inflation
- 53rd week in 2022
- Ongoing efforts to manage inflationary pressures, including unlocking gross efficiencies
Challenges Ahead
- Impact of divestitures versus the prior year
- Inflationary pressures
- Higher commodity costs, primarily in dairy, packaging materials, and meat
- Higher supply chain costs, reflecting inflationary pressure in procurement, logistics and manufacturing costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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