FILE PHOTO: A Heinz Ketchup bottle sits between a box of Kraft macaroni and cheese and a bottle of Kraft Original Barbecue Sauce on a grocery store shelf in New York March 25, 2015. REUTERS/Brendan McDermid/File Photo
October 27, 2021
(Reuters) -Kraft Heinz Co raised its full-year core profit forecast on Wednesday, as the Jell-O maker benefits from increased pricing and sustained demand for its packaged food even as COVID-19 curbs ease.
Kraft, like its peers Campbell Soup Co, Conagra Brands Inc and Unilever PLC, has been raising product prices in recent months to offset heightened inflation caused by raw material and labor shortages due to the pandemic.
It has further benefited from steady at-home dining trends that emerged during the pandemic despite the reopening of dine-in restaurants and bars.
The ketchup maker said it expects full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be over $6.2 billion, above its previous estimate of at least $6.1 billion.
Net sales in the third quarter fell to $6.32 billion for the Jell-O maker from $6.44 billion a year earlier. Analysts on average had expected sales of $6.05 billion, according to Refinitiv IBES.
Excluding items, the packaged foods maker earned 65 cents per share, beating analysts’ average estimate of 58 cents.
(Reporting by Deborah Sophia and Aditi Sebastian in Bengaluru; Editing by Shinjini Ganguli)