Kraft Heinz Co. posted $6.65 billion sales in the second quarter ended June 27, rising 3.8 percent and beating analysts' expectations for $6.54 billion.
Shares of the Chicago-based company jumped over two percent in premarket trading.
However, it took a $2.9 billion charge to write down several of its businesses, including Maxwell House coffee brands and Oscar Mayer deli meat resulting in a second-quarter loss.
The impairment losses were worth $626 million for Oscar Mayer, $140 million for Maxwell House, and $290 million related to seven other brands.
Second-quarter sales of Kraft Heinz's Oscar Mayer deli meats rose only 9 percent, way below the 18 percent collective growth of the US lunch meat market.
Consequently, the impairment charges caused the company a second-quarter loss of $1.65 billion, or $1.35 per share, compared to its reported profit of $449 million, or 37 cents a share, a year ago.
The company said that without impairment charges and after other adjustments, it earned a second-quarter profit of 80 cents a share, analysts' average estimate of 65 cents.
