Higher Kraft Heinz profit despite lower turnover

Higher Kraft Heinz profit despite lower turnover
Shutterstock

Food company Kraft Heinz’ second quarter like-for-like turnover dropped slightly, but the American company did manage to seriously enhance its profitability.

Lower costs

Kraft Heinz’ second quarter turnover reached 6.7 billion dollars (5.6 billion euro), down 1.7 % compared to last year. On a like-for-like basis, turnover dropped 0.9 %. North American and European promotions negatively impacted turnover by 0.4 % because of lower prices.

 

Net profit did grow 50.5 % to 1.16 billion dollars (975 million euro), mostly thanks to internal cost-saving measures. It previously indicated to lower annual costs by 1.7 billion dollars (1.4 billion euro) until 2018.

 

Despite the lower turnover (at least compared to last year), Kraft Heinz’ performance was still better than in its first quarter. “As expected, our second quarter results were sequentially better than our first quarter, and we expect this momentum to continue into the second half of the year”, CEO Bernardo Hees said. 

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Europe and Asia give Guess strong quarter

22/11/2017

American fashion brand Guess’ third quarter turnover grew more than 3 %, mainly thanks to excellent sales in Asia and Europe. It did post a net profit loss however.

Online FMCG sales continue to soar

22/11/2017

According to a new Kantar Worldpanel report, online grocery sales grew 30 %, in stark contrast with the overall 1.3 % increase. Online sales now contribute 4.6 % to the overall FMCG sales, but that will grow to 10 % (145 billion euro) by 2025.

Nestlé considers Hain Celestial acquisition

22/11/2017

Nestlé is allegedly interested in a Hain Celestial acquisition. The food company manufactures organic and vegetarian food and is currently valued at about 3.5 billion euro.

Urban Outfitters gets back on track in third quarter

21/11/2017

Following several quarters of negative results, Urban Outfitters’ third quarter was one of growth. Total turnover grew 3.5 % and there was a 1 % like-for-like growth.

Scotland is first to enforce minimum alcohol price

21/11/2017

Scotland is the first in the world to finally enforce a minimum price for alcohol. The law as approved in 2012, but whisky distillers managed to block the legislation up until now.

Europe approves organic reform, Belgium abstains

21/11/2017

The European Commission approved new legislation to simplify organic agriculture in Europe. It will be enacted in July 2020. There was no agreement among Belgian politicians, which is why Belgium abstained.

Back to top