Kraft Heinz Reports Q3 Earnings Above Street View

Kraft Heinz Co KHC reported third-quarter FY22 sales growth of 2.9% year-on-year to $6.50 billion, beating the consensus of $6.27 billion.
Sales in North America rose 1.5% Y/Y, and International climbed 7.7%.
Gross profit decreased by 9.1% Y/Y to $1.84 billion, with the margin contracting 370 points to 28.3%.
Operating margin for the quarter was 11.5%, and the operating income decreased 35% Y/Y to $751 million.
Adjusted EBITDA fell 5.5% to $1.4 billion.
Adjusted EPS of $0.63 beat the analyst consensus of $0.57.
Kraft Heinz held $998 million in cash and equivalents as of September 24, 2022. Net cash provided by operating activities for nine months totaled $1.5 billion.
Outlook: Kraft Heinz reaffirmed its 2022 Organic net sales outlook of a high-single-digit percentage increase versus the prior year.
Due to uncertainty concerning the potential impact of continued upstream supply chain challenges faced by the industry, the company anticipates coming in at the lower end of the revised Adjusted EBITDA range of $5.9 billion - $6.0 billion.
Price Action: KHC shares are trading lower by 1.01% at $36.69 on the last check Wednesday.