Kraft Heinz Co. (NASDAQ: KHC) reported its fourth-quarter financial results before the markets opened on Thursday. The company said that it had $0.72 in earnings per share (EPS) and $6.54 billion in revenue, while consensus estimates had called for $0.68 in EPS on revenue of $6.6 billion. In the same period of last year, the food maker said it had EPS of $0.84 and $6.89 billion in revenue.
During the most recent quarter, organic net sales decreased 2.2% from last year. Pricing increased 2.0 percentage points, reflecting higher pricing in all business segments except Canada.
In terms of its segments, the company reported as follows:
- United States net sales declined 2.7% year over year to $4.68 billion.
- Canada net sales declined 23.8% to $457 million.
- EMEA net sales decreased by 0.5% to $689 million.
- Rest of World net sales decreased by 10.1% to $708 million.
In the report, the company offered no guidance for the first quarter. However, the consensus estimates call for $0.57 in EPS and $5.83 billion in revenue for the period.
Miguel Patricio, Kraft Heinz CEO, commented:
While our 2019 results were disappointing, we closed the year with performance consistent with our expectations, and driven by factors we anticipated. We have taken critical actions over the past six months to re-establish visibility and control over the business. And we remain convinced Kraft Heinz has the potential to achieve best-in-class financial performance as we begin transforming our capabilities and making necessary investments in our brands based on deep consumer insights. Our turnaround will take time, but we expect to make significant progress in 2020, laying a strong foundation for future growth.
Shares of Kraft Heinz closed Wednesday at $30.04, with a consensus price target of $30.95 and a 52-week trading range of $24.86 to $48.66. Following the announcement, the stock was down about 2% at $29.47 in early trading indications Thursday.
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