Kraft Heinz has a profit of US$757 million in the 4th quarter of 2023

São Paulo. 14 – The food company Kraft Heinz, from the United States, had a net profit of US$ 757 million, or US$ 0.61 per share, in the fourth quarter of 2023, the company reported this Wednesday, 14. The result corresponds a decline of 14.9% compared to net profit of US$890 million in the same period in 2022, or US$0.72 per share. Net sales fell 7.1%, from US$7.38 billion to US$6.86 billion. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) lost 5.3% in the fourth quarter, to US$1.65 billion, compared to the same range in 2022. In adjusted terms, profit decreased by 8.2 %, to $0.78 per share.

Kraft Heinz's results were below expectations for the quarter. Analysts surveyed by FactSet expected net income to rise to $971.5 million, or $0.76 per share. Net sales were expected to fall to $6.99 billion. However, adjusted earnings were slightly above estimates, at US$0.77 per share.

In the quarter, net sales in North America fell 9.1%, to US$ 5.167 billion, while in the international segment the loss was 0.2%, to US$ 1.693 billion. In the entire year 2023, the company had an increase of 0.6% in net sales, to US$ 26.64 billion compared to the previous year, driven by the 6% increase in international sales, and offsetting the 1% decline in North America.

Organic sales fell 0.7% in the fourth quarter compared to the same period in 2022. Prices rose 3.7 percentage points compared to the equivalent period of the previous year, with increases in both segments reported, driven mainly by price increases list to mitigate higher input costs. Volume/mix decreased by 4.4 percentage points compared to the same period of the previous year, with falls in both segments reported, mainly due to elasticity effects of pricing actions and challenges in the industry, especially the reduction in benefits from United States Supplemental Nutrition Assistance Program (Snap).

“In the fourth quarter, the industry faced challenges driven by continued consumer pressure,” company CEO Carlos Abrams-Rivera said in a statement. “Looking ahead, we expect some of these pressures to dissipate, especially as the reduction in Snap program benefits is overcome,” the CEO added.

For 2024, Kraft projects adjusted earnings before interest, taxes, depreciation and amortization between $3.01 and $3.07, compared to the FactSet consensus of $3.04. Organic net sales are expected to grow 0 to 2% year-over-year, the company said. Kraft shares are up 7.6% over the past three months, while the S&P 500 index has gained 10.2% over the period.