Kraft Heinz Q1 2022 Earnings Report
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.
Kraft Heinz
Kraft Heinz
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.
- Uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items impacting comparability