Food and beverage brand Kraft Heinz posted a weak performance in its second-quarter results, with net sales decreasing by 1.9% to around £4.8bn.

The company reported a steep operating loss of around £6bn, which was driven by a £6.9bn non-cash impairment loss due to its declining stock value. Operating income fell by around 16%.

Additionally, Kraft Heinz’s volumes went down by 2.7% year-over-year. Despite the declining sales, the company still performed ahead of analysts’ estimates.

However, the company remains confident in its previous estimates and maintained its future outlook for the full fiscal year.

Carlos Abrams-Rivera, CEO of Kraft Heinz said: “We are proud to play a vital role in families’ lives, and our commitment to delivering superior, affordable, and accessible products is unwavering. Our second quarter top-line results reflect this dedication, improving from the first quarter.”

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“We are generating strong cash flow, maintaining our target net leverage ratio, and returning capital to stockholders, providing us with solid financial flexibility.”

The firm expects organic net sales to decrease by between 1.5% and 3.5% year-over-year. Additionally, it predicts that adjusted operating income will reduce by between 5% and 10%.

In July, the company offloaded its Italian baby food brand to New Princes as part of its strategy to drive investment and growth in its core brands.