Kraft Heinz (KHC) posted stronger-than-expected fourth quarter earnings Wednesday, and issued a solid near-term forecast, after the packaged food giant was able to offset input costs with across-the-board price increases.
Kraft Heinz said adjusted earnings for the three months ending in December were pegged at 79 cents per share, or $1.6 billion, down 1.25% from the same period last year but well ahead of the Street consensus forecast of 63 cents as the group was able to raise overall prices for its arrange of consumer goods by around 3.8%.
Group revenues, the company said, slipped 2.9% to $6.7 billion but again topped analysts' estimates of a $6.61 billion tally.
Looking into the coming year, Kraft Heinz said it sees "low-single-digit" growth in organic sales, with adjusted earnings in the region of $5.8 billion to $6 billion.
“Our strategic transformation has powered another year of outstanding performance,” said CEO Miguel Patricio. “Our achievements are proof that our scale and agility have led to better results and greater relevance with customers and consumers."
"We are generating efficiencies to fuel incremental investments in our business, which, along with successful pricing, are mitigating inflationary pressures," he added. "I'm proud of our incredible team and have great confidence that we will build on our momentum in 2022.”
Kraft Heinz shares were marked 5.25% higher in early afternoon trading Wednesday to change hands at $36.50 each, a move that would trim the stock's six-month decline to around 3.3%.
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