By Dhirendra Tripathi
Investing.com – Kraft Heinz stock (NASDAQ:KHC) jumped 6% Wednesday after the company beat revenue and profit estimates, boosted by higher product prices.
High demand for snacks and ketchups that companies like Kraft sell has allowed them to pass on rising costs of raw materials, labor and logistics. In the quarter ended Dec. 25, Kraft raised product prices by 3.8 percentage points year-on-year. Volumes were mostly unchanged with a recovery in the foodservice business offset by supply constraints and tough 2020 comparisons for the retail division, according to the company.
Kraft expects 2022 organic sales to grow by a low-single-digit percentage, compared with a 1.8% rise in 2021. Adjusted earnings at the base operating level are seen at $5.9 billion at the center of its guidance range.
Net sales fell 3.3%, to $6.7 billion, owing to an impact from acquisitions and divestitures.
The company booked a net loss of $257 million in the quarter, mainly due to non-cash impairment losses. However, on an adjusted basis, it booked a profit, and on per share basis, it came in at 79 cents to beat estimates.