Kraft Heinz net sales miss estimates as food giant flags impact of price hikes

Investing.com -- Kraft Heinz Co (NASDAQ:KHC) has posted fourth-quarter net sales that missed expectations, as the packaged food group faced headwinds from recent price hikes that have dented demand.

Shares in the Kool-Aid and Miracle Whip owner edged down in premarket U.S. trading on Wednesday.

Like other consumer goods firms, Kraft Heinz has been raising its prices in recent months in response to inflationary pressures that have pushed up input costs. Although this had supported revenues, shoppers have showed signs of balking at the higher price tags.

In the three months ended on Dec. 30, total volumes declined by 4.4 percentage points versus the year-ago period. Kraft Heinz cited the impact of pricing actions and a reduction in a food assistance program in the United States.

Organic sales dropped by 0.7% to $6.86 billion, below Bloomberg consensus estimates of $6.98 billion. Adjusted earnings before interest, tax, depreciation and amortization of $1.65B were also under projections of $1.69B.

Chief Executive Carlos Abrams-Rivera said that "looking ahead" the company expects some of the consumer pressure to dissipate. Organic net sales in 2024 are seen growing by 0% to 2% compared to the previous year, while adjusted operating income is anticipated to expand between 2% to 4%.