Higher Kraft Heinz profit despite lower turnover

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.