Kraft Heinz has reported strong sales growth, despite the challenges of a “diffuclt operating environment” throughout 2022.
The multinational food company saw a 10.4% rise in organic net sales in the three months to 31 December 2022 which came partly due to a 15.2% price rise.
As a result, this saw the businesses volumes down by 4.8% in the fourth quarter as consumers looked to purchase less amid the cost-of-living crisis.
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Despite this, Kraft Heinz reported net sales in the quarter up 10% to £6.2 billion, its organic net sales for the year up 9.8% and full-year revenue rose by 1.7% to £22.1bn.
However, earnings before interest taxes did decline by 5.8% to £5bn as the company faced high supplier costs and pricing across areas such as dairy, meat, vegetable oils and energy.
Speaking of the challenges, Kraft Heinz CEO and chair, Miguel Patricio said that “the results were even more impressive considering the difficult operating environment, with record levels of inflation and supply chain disruptions, to which our teams responded with agility.”
He said that overall, “2022 was an incredible year” for the business, “delivering strong results and ending the fourth quarter with solid momentum that positions us well for 2023.
“We continue to see strength driven by our key growth pillars, while at the same time prioritizing investments in our brands and delivering on efficiencies.”
Patricio added: “I am very proud of the entire Kraft Heinz team for a strong year, while continuing to execute on our long-term strategy. We are confident that all the work we’ve done thus far positions us well to accelerate profitable growth and generate attractive returns for our stockholders.”
The company expects organic net sales growth of 4% to 6% this year, while anticipating high single-digit inflation with pricing and gross efficiencies contributing to adjusted gross profit margin recovery which will fund investments across technology, marketing and people.
