American confectionery, food and beverage conglomerate Kraft Heinz Co. has posted a net sales increase of 0.3% to $6.9 billion for Q4 2017, below analyst expectations of 0.9%.
Organic sales decreased by 0.6% for the manufacturer of Jell-O and Heinz baked beans, when currency fluctuations and other items are taken into consideration.
The subpar performance was in large part due to lower shipments for nuts, natural cheese and cold cuts in the U.S. However, the company's reported quarter benefited from the country's tax overhaul, according to Kraft Heinz.
The company, which is backed by billionaire investor Warren Buffet, saw a 1.1% decrease to 4.839 billion in sales during that period in the United States, which makes up over 70% of its sales.
Sales in Canada were down 4.1% to $591 million, including a favourable 4.5 percentage point impact from currency, while organic net sales decreased 8.6%.
Meanwhile, Kraft Heinz’ European sales rose 9.3% to $656 million, including an 8.4 percentage point benefit from currency, while organic sales increased by 0.9%.
In the company’s remaining business, its net sales were $843 million, a 5.2% increase, despite a negative 1.8 percentage point impact from currency. Organic Net Sales increased 7.0% compared to the same period in 2016.
“There's no question that our financial performance in 2017 did not reflect our progress or potential,” said Kraft Heinz CEO Bernardo Hees. “We made significant improvements in many of our businesses, and were able to accelerate some important business investments at the end of the year.
“This, together with benefits from the U.S. Tax Cuts and Jobs Act and additional investments in our capabilities, should help further advantage our brands and grow our business in 2018 and beyond.”
© 2018 - Checkout Magazine by Kevin Duggan