Kraft Heinz Q3 net sales $6.3 billion, down 1.5%Staff Writer | November 3, 2016
The Kraft Heinz Company reported third quarter 2016 financial results that reflected a combination of significant gains from cost savings and the redemption of preferred stock, as well as lower taxes versus the prior year period.
Kraft Heinz Organic Net Sales decreased 1 percent
Organic Net Sales decreased 1 percent versus the year-ago period. Pricing decreased 0.7 percentage points driven by key commodity deflation in the United States, primarily in meats and coffee, and coffee in Canada, as well as higher promotional expenses in Europe.
Volume/mix decreased 0.3 percentage points primarily due to lower shipments across several categories, particularly cold cuts, foodservice and nuts in the United States.
This was partially offset by growth driven by innovation in Lunchables and the macaroni and cheese portfolio, as well as gains in coffee in the United States and growth in condiments and sauces globally.
Net income attributable to common shareholders increased to $842 million and GAAP diluted EPS increased to $0.69.
Adjusted EBITDA increased 21.7 percent versus the year-ago period to $1.8 billion, including a negative 0.8 percentage point impact from currency, driven by gains from cost savings initiatives and favorable pricing net of key commodity costs.
Adjusted EPS increased 88.6 percent versus the year-ago period to $0.83, mainly reflecting growth in Adjusted EBITDA, the refinancing of Series A Preferred Stock and lower taxes. ■