Kraft Heinz Q4 Profit Beats Estimates; Organic Net Sales Up 10.4%

(RTTNews) - The Kraft Heinz Company (KHC) reported fourth quarter net income to shareholders of $890 million, compared to a loss of $257 million, a year ago. The company said the increase in earnings was primarily driven by non-cash impairment losses in the prior year period, lower interest expense primarily due to debt extinguishment costs in the prior year period, and higher adjusted EBITDA versus the prior year period. Profit per share was $0.72, compared to a loss of $0.21.

Adjusted EBITDA increased 8.6 percent versus the year-ago period to $1.7 billion. Adjusted EPS was $0.85, up 7.6 percent. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.78, for the quarter. Analysts' estimates typically exclude special items.

Net sales increased 10.0 percent versus the year-ago period to $7.4 billion, including a positive 7.1 percentage point impact from a 53rd week, a negative 4.6 percentage point impact from divestitures and acquisitions, and a negative 2.9 percentage point impact from currency. Organic net sales increased 10.4 percent versus the prior year period. Analysts on average had estimated $7.26 billion in revenue.

The company expects 2023 organic net sales growth of 4 to 6 percent versus 2022. Constant currency adjusted EBITDA growth from 2022 to 2023 is expected to range between 2 to 4 percent, or 4 to 6 percent when excluding the impact from the 53rd week in 2022. Adjusted EPS is expected to be $2.67 to $2.75.

The Kraft Heinz Company announced that the Board declared a regular quarterly dividend of $0.40 per share of common stock payable on March 31, 2023, to stockholders of record as of March 10, 2023.

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