American Kraft Heinz achieved a small 0.7 % turnover growth in the third quarter, mainly because a strong European turnover surge (+ 7 %).
Drop in VS, strong growth in Europe
Kraft Heinz’ total third quarter turnover reached 6.314 billion dollars (5.4 billion euro), up 0.7 % compared to the year before. 0.4 % came through positive exchange rate fluctuations however. Net profit grew 12.1 %, from 842 million dollars to 944 million dollars (810 million euro), mainly because of decreased costs.
Its performance in the United States was lackluster, down 0.4 % to 4.38 billion dollars (3.8 billion euro), while its adjusted EBITDA grew 6.8 % to 1.44 billion dollars (1.2 billion euro). An altered consumer behaviour in the United States was partially to blame, because consumers are nowadays looking for fresh food more. It is the sixth straight quarter the company suffered a turnover drop in the United States.
Turnover did grow in its other regions: Europe went up 7.3 % to 599 million dollars (510 million euro), but it was only a 3.4 % like-for-like growth, because the exchange rates contributed another 3.9 %. Seeing how Europe is only a small part of its total turnover, the region’s growth only marginally impacted its overall growth numbers.