Kraft Heinz (NASDAQ:KHC) cut its annual forecast for organic net sales growth, while its results for the fiscal Q2 came in mixed.
The company posted Q2 earnings per share (EPS) of $0.78, surpassing the consensus forecast of $0.74. Revenue for the quarter stood at $6.48 billion, slightly below the consensus estimate of $6.56 billion.
Shares fell less than 1% in premarket trading Wednesday.
The quarter saw a 3.4 percentage point drop in overall volumes, while prices across Kraft Heinz's portfolio increased by 1.0 percentage point. This compares with the previous year's 7 percentage point volume decline and an 11 percentage point rise in prices.
For its FY2024 guidance, Kraft Heinz projects an EPS range of $3.01 to $3.07, against the analysts' expectations of $3.01.
The company now expects Organic Net Sales to decrease by 2 percent or remain flat compared to the prior year, revising its earlier forecast of 0 to 2 percent growth.
Moreover, KHC announced that its Board of Directors has declared a regular quarterly dividend of $0.40 per common share, payable on September 27, 2024, to shareholders who are on record as of August 30, 2024.
“Our second quarter net sales growth came in lower than originally anticipated, as consumer sentiment remains cautious,” said Kraft Heinz CEO Carlos Abrams-Rivera.
“While we are now expecting a more gradual top-line improvement in the back half of the year, we continue to unlock efficiencies that are allowing us to make accretive investments in our brands, grow profits, and drive future sales growth.