When Kraft Heinz Co. (NASDAQ: KHC) reported its second-quarter financial results before the markets opened on Thursday, the packaged foods company said that it had $0.80 in earnings per share (EPS) and $6.65 billion in revenue. The consensus estimates had called for $0.65 in EPS and revenue of $6.54 billion, and the same period of last year reportedly had EPS of $0.78 on $6.41 billion in revenue.

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During the latest quarter, net sales increased 3.8% year over year, despite a −2.1% impact from divestitures and an unfavorable 1.5% point impact from currency. Organic Net Sales increased 7.4%, driven by increased retail demand that more than offset lower foodservice-related sales, a result of the COVID-19 pandemic.

Volume/mix grew 5.2% as strong consumer demand in retail, together with a partial recovery in retail inventory levels from the end of the first quarter, more than offset significant declines in foodservice-related sales.

In terms of its segments, Kraft Heinz reported as follows:

• United States net sales increased 8.5% year over year to $4.92 billion.
• International net sales decreased by less than 1% to $1.31 billion.
• Canada net sales decreased by 24% to $426 million.

One other highlight from this quarter was that Kraft Heinz wrote down the value of four reporting units by roughly $1.8 billion. These include charges at its U.S. and Canadian foodservice businesses, which supply restaurants, cafeterias and such. At the same time, the company took $1.1 billion off the value of Oscar Mayer, Maxwell House and seven other brands.

At the end of the quarter, cash and cash equivalents totaled $2.81 billion, up from $2.28 billion at the end of the previous fiscal year.

Kraft Heinz stock traded down about 4% on Thursday to $34.22, in a 52-week range of $19.99 to $35.87. The consensus price target is $33.47.

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