Kraft Heinz Sales Up Due to Demand for Products During COVID-19 Pandemic
Q1 net sales growth expected to be 3%, while organic net sales growth up 6%.
Kraft Heinz's growth has accelerated in the wake of very strong consumer demand for its products and trusted brands, despite significant declines in foodservice-related sales around the world. Net sales are now expected to increase approximately 3% and Organic Net Sales(1) are expected to increase approximately 6%. The difference between expected net sales and Organic Net Sales is primarily attributable to prior year divestitures and currency impacts. This compares to previous expectations for a low single-digit rate of decline in Organic Net Sales versus the prior year.
At the same time, the company does not expect the full benefit from incremental sales in the quarter to flow through to net income/(loss) from continuing operations, Adjusted EBITDA(1), or earnings per share due to added expenses to meet this accelerated growth in addition to headwinds previously disclosed on its February earnings call.