Hearty: Kraft Heinz carried by packaged meal demand as it reinstates dividend
Food giant Kraft Heinz has been carried by strong demand for snacks and packaged meals which has boosts sales and profits, pushing it past analyst forecasts.
Kraft Heinz recorded net sales of $6.6bn in its second quarter to 26 June – inching past estimates of $6.5bn.
The Chicago-based group is also set to reinstate a quarterly dividend of 40 cents per share which will be payable to shareholders by the end of September.
Operating profits swung from a loss of $1.3bn in 2020 to an income of $1.2bn. While overall profits hit nearly $2.3bn.
The food giant benefited from the global trend ushered in by national lockdowns, where consumers found themselves having to cook far more frequently than before.
Net sales and profits tumbled slightly from the unprecedented levels seen during the height of the pandemic, where it raked in $26bn in total sales by the end of 2020.
Analysts expect that once restrictions ease globally, Kraft Heinz’s sales boost will begin to cool down further from its pandemic peak.
The group pulled in 78 cents per share, climbing slightly above analyst forecasts of 72 cents a share.
“While industry challenges, like cost inflation, certainly remain, the investments we are making in our people, brands, and capabilities are enabling us to leverage our tremendous scale,” CEO Miguel Patricio said.