Kraft Heinz has exceeded expectations in the third quarter. Prices rose by 15.4 %, but this did not slow down sales all that much: volume fell by “only” 3.8 %.
Another 15% more expensive
The ketchup giant manages to overcome the current economic situation thanks to price increases: in the third quarter of this year, its sales reached 6.51 billion dollars. This is better than the 6.27 billion dollars expected by analysts. On the other hand, profits almost halved from 733 million dollars a year ago to 432 million dollars.
On average, sales prices rose by 15.4 % in the third quarter, but sales volumes fell by 3.8 %. Yet analysts speak of strong sales. Consumers are cooking more at home to cut costs, which works in the favour of the FMCG giants. However, analysts warn that the ceiling for price increases could be close.
Kraft Heinz also managed to solve its supply chain problems and increase its capacity. As a result, more products were available on supermarket shelves, which also increased market share. In Australia and New Zealand, however, the group is reportedly looking for a buyer.
