Kraft Heinz has topped Wall Street sales expectations in its first quarter, as chief executive Steve Cahillane’s push to revitalise the packaged food giant’s brands showed early signs of momentum.

The Heinz Beanz and Philadelphia owner reported net sales of $6.05bn for the quarter, ahead of analyst expectations of $5.89bn.

Shares in the company rose around three per cent in premarket trading following the update.

Diluted earnings per share increased 13.6 per cent year on year to $0.67, while adjusted earnings per share fell 6.5 per cent to $0.58.

Cahillane, who took over as chief executive in January, said investments made last year were starting to drive “early traction”, particularly across key parts of the portfolio such as its Taste Elevation division.

He added that 35 per cent of Kraft Heinz’s business was gaining or holding market share during the quarter, up from 21 per cent a year earlier.

However, the group continued to face pressure from cautious consumer spending and rising costs. Organic net sales fell 0.4 per cent year on year, as pricing rose 0.8 percentage points while volumes declined 1.2 percentage points.

Kraft Heinz said price increases in selected categories had been used to offset higher input costs, although coffee and cold cuts weighed on volumes during the period.

Gross profit margin expanded 230 basis points to 36.7 per cent, while adjusted gross profit margin slipped 30 basis points to 34.1 per cent.

Free cash flow rose 58.9 per cent to $0.8bn.

The company maintained its full-year outlook, with organic net sales expected to fall between 1.5 per cent and 3.5 per cent. Adjusted earnings per share are forecast to come in between $1.98 and $2.10.

Cahillane said the cautious guidance reflected a volatile trading environment, with inflationary pressures and weak consumer sentiment continuing to shape demand.

Kraft Heinz shelved a previously announced plan to split into two publicly traded businesses earlier this year, a move expected to save the company around $300m in costs.

Instead, the food giant has committed roughly $600m to marketing, sales, research and development as it looks to revive its US business and strengthen its core brands.

Emerging Markets was the company’s fastest-growing division, with net sales up 7.6 per cent to $746m, while North America sales slipped 0.7 per cent to $4.46bn.

Kraft Heinz paid $474m in dividends during the quarter and did not repurchase any stock under its buyback programme.

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