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Kraft Heinz profits up as costs crunched

Published 02/16/2017, 05:53 PM
Updated 02/16/2017, 06:59 PM
© Reuters.  Consumers shunned packaged foods for healthier alternatives
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Investing.com - Kraft Heinz Co (NASDAQ:KHC) reported higher-than-expected profit on Thursday, as a decrease in costs helped boost top-line growth.

Kraft Heinz, maker of household brands like Jell-O and Heinz ketchup, overcame a difficult period of falling demand as consumers opt for healthier foods over packaged foods.

Despite a 3.8% drop in sales to $6.86 billion, Kraft Heinz's fourth-quarter results topped analysts’ estimates of $6.74 billion.

In the U.S., Kraft Heinz's most important market which makes up a large bulk of its sales (roughly 70%), fell 3.1%, as a stronger dollar and weaker demand weighed on sales growth.

In Europe, sales fell the most, with revenue down 13.3% year-on-year to $600 million.

Kraft Heinz shares closed down more than 4% at $87.28, but reversed losses in after-hours trade.

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