Food company Kraft Heinz has had an awful first quarter, with turnover and net profit both dropping compared to the year before. It is Kraft Heinz’ fifth straight quarter with lower turnover.
Fifth straight quarter
First quarter turnover dropped 3.1 % from 6.57 billion dollars (6.01 billion euro) to 6.36 billion dollars (5.82 billion euro), while its profit (at 893 million dollars – 817 million euro) went down 0.3 % compared to the previous year.
“Although our top line results in the first quarter reflect a slow start to the year, we remain on track with our key initiatives", said Kraft Heinz CEO Bernardo Hees. "We are delivering product innovations, renovations and geographic expansion that positions Kraft Heinz to drive organic sales growth for the balance of 2017 and beyond.”
The company generates about 70 % of its turnover in the United States, but it had to deal with a 3.5 % turnover drop compared to the previous year. Europe performed even worse, down 6.8 %, although that was largely because of 6.6 % negative exchange rate fluctuations and a 0.6 % price drop. European volumes grew 0.4 %, although Dutch and Italian sales were not as strong as in the rest of Europe.