Kraft Heinz post 3.9% net sales growth to beat expectations

Kraft Heinz's net sales grew 3.9 percent to $6.39 billion in the first quarter from the significantly good $6.16 billion last year to beat estimates, as it sustains household penetration for its packaged goods.

The company, which had predicted flat-to-positive organic net sales growth, reported a 2.5 percent organic growth for the quarter.

The owner of Philadelphia cream cheese and Heinz Ketchup enjoyed robust sales across all business segments, with continued growth in emerging markets and resilience in developed markets.

Kraft Heinz’s net sales in the US grew by 2.5 percent to $4.61 billion, while its international segment posted net sales of $1.39 billion, for a 7.2 percent growth.

Meanwhile, sales in Canada climbed 8.8 percent to $392 million.

However, growth was partially offset by declines in food service and lower retail takeaway.

The company's quarterly operating income soared 41.3 percent to $1.09 billion from last year's $770 million, driven by strong gross profit growth and lesser general corporate expenses.

Kraft Heinz CEO, Miguel Patricio said they will continue to focus on leveraging their tremendous scale by improving their capabilities and overall agility.