The Kraft Heinz Company has reported lower global sales and profit for the first quarter, which management attributed to growing market pressures.
For the quarter ended March 29, net sales fell 6.4 per cent to US$6 billion, while organic net sales slid 4.7 per cent.
By region, net sales decreased 7 percent in North America, 4.4 per cent in international developed markets and 4.7 per cent in emerging markets.
On the bottom line, operating income decreased 8.1 percent to $1.2 billion and net income fell 11 per cent to $714 million.
“This quarter, we delivered results in line with our top line expectations despite growing market pressures,” said Kraft Heinz CEO Carlos Abrams-Rivera.
“In today’s uncertain times, we are committed to controlling the controllables and making the necessary investments to deliver quality, taste, and value to our consumers through our beloved brands,” he added.
The company has lowered its full-year outlook, expecting organic net sales to decrease 1.5-3.5 per cent, with sequential improvement recorded throughout each quarter.
“We’re closely monitoring the potential impacts from macro-economic pressures such as tariffs and inflation, and we are dedicated to increasing investments to drive product and brand superiority,” said Abrams-Rivera.
