Kraft Heinz reports 3.8% net sales growth in Q2
The US food giant has reported net sales of $6.6 billion in the second quarter of 2020
Kraft Heinz has reported sales of 6.6 billion in the second quarter of 2020, which reflected net sales growth of 3.8%. The US food company saw organic net sales growth at 7.4% compared with the same period a year ago.
For Kraft Heinz, these numbers respond to the strong retail performance across all business segments.
“Our response to the ongoing Covid-19 pandemic reflects the hard work and dedication of our remarkable employees around the world,” said Kraft Heinz chief executive Miguel Patricio.
Patricio said the company is starting to realise the benefits of agility and scale, while implementing changes across the company to further drive agility, both internally and how we go to market.
“We believe this will be the key to returning the Company to sustainable long-term growth and profitability, and we look forward to providing greater details on these initiatives during our Investor Day in September,” Patricio concluded.
For Kraft Heinz, the 3.8% increase in net sales in this period was achieved despite a negative 2.1 percentage point impact from divestitures and an unfavourable 1.5 percentage point impact from currency.
Organic Net Sales increased 7.4% driven by increased retail demand that more than offset lower foodservice-related sales, each stimulated by the Covid-19 pandemic.
Pricing increased 2.2 percentage points versus the same period a year ago, primarily reflecting a lower level of promotional activity.
The volume mix grew 5.2 percentage points compared to the same period a year ago. Kraft Heinz said that strong consumer demand in retail, together with a partial recovery in retail inventory levels from the end of the first quarter, more than offset significant declines in foodservice-related sales.