Kraft Heinz has announced further price rises of its snacks and condiments to handle soaring inflation of raw material and transportation costs.
In its final quarter of 2021, ended 26 December 2021, the FMCG giant reported a 3.9% decrease in net sales to $6.7 billion (£4.9 billion) and by 1.8% for the year as a whole.
Despite increases in international markets and Canada, the FMCG giant also reported a 3.3% drop in overall revenues in the quarter as a result of the disposal of its natural cheese business to Lactalis in November, with reduced numbers for the US market.
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Pricing was up 3.8% compare with the same period in 2020 as Kraft Heinz dealt with rising inflation costs.
It also reported an 184% fall in net profits to $1 billion, with the group falling to a $255 million (£187 million) loss. Adjusted EBITDA decreased by 4.5% to $6.4 billion for the year – but still remained higher than pre-pandemic levels
“Our strategic transformation has powered another year of outstanding performance,” Kraft Heinz CEO Miguel Patricio said.
“Our achievements are proof that our scale and agility have led to better results and greater relevance with customers and consumers. We are generating efficiencies to fuel incremental investments in our business, which, along with successful pricing, are mitigating inflationary pressures.
“I’m proud of our incredible team and have great confidence that we will build on our momentum in 2022.”
