The Kraft Heinz Company have published its second quarter results revealing “strong price realisation and resilient demand” despite an EBITDA decrease of 10.9%.
The FMCG company reported a 13.4% decrease in gross profit in the year ending June 25 compared to the previous year.
However, its Organic Net Sales saw an increase of 10.1% compared to 2021. Pricing was also up by 12.4% which was primarily driven by price increases to mitigate rising input costs.
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Net income loss increased by 1136.4% versus a year ago to $265 million due to lower tax expenses in the current year period.
The company’s EBITDA also decreased by 10.9% to $1.5 billion with performance points and an unfavourable 1.1% impact from currency.
The fall in EBITDA has been cited as a result of higher pricing and efficiency gains that were offset by higher commodity costs in dairy, packaging materials, soybean and vegetable oils as well as meat.
Supply chain costs were also specified as a factor due to the inflationary pressure in procurement, logistics and manufacturing sosts.
“We delivered yet another quarter of strong results as we continue to successfully navigate near-term headwinds, enabled by further advancements of our long-term strategy,” Kraft Heinz CEO and chair Miguel Patricio said.
“Though the environment remains fluid, we are better able to anticipate dynamic conditions, adapt to this constantly changing environment, and demonstrate our resiliency against new challenges.”
Patricio added: “We are anticipating and adapting to changing market conditions while managing inflation through pricing realization and gross efficiencies. I am very proud of the Kraft Heinz team because, despite all of the challenges, employees across the organization continue to do a tremendous job.”
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