=Kraft Heinz (KHC) reported earnings on Wed 3 May 2017 (a/h)

Kraft Heinz misses by $0.02, misses on revs :

• Reports Q1 (Mar) earnings of $0.84 per share, $0.02 worse than the Capital IQ Consensus of $0.86; revenues fell 3.1% year/year to $6.36 bln vs the $6.44 bln Capital IQ Consensus.
• Organic Net Sales decreased 2.7 percent versus the year-ago period. Pricing increased 1.0 percentage points as price increases in Rest of World markets, primarily Latin America, as well as the United States more than offset an unfavorable impact from promotional timing versus the prior-year period, particularly in Canada and Europe. Volume/mix decreased 3.7 percentage points as declines in North America more than offset growth in Rest of World markets and Europe.
  • United States net sales were $4.6 billion, down 3.5 percent versus the year-ago period. Pricing increased 0.7 percentage points primarily due to price increases in cheese. Volume/mix decreased 4.2 percentage points from a combination of consumption weakness across categories, primarily driven by calendar shifts, as well as select distribution losses in the club channel. The categories most affected by these factors were foodservice, cheese, meats and nuts. These declines were partially offset by continued growth from Lunchables, and innovation-led growth in frozen meals and macaroni and cheese.
• "Although our top line results in the first quarter reflect a slow start to the year, we remain on track with our key initiatives," said Kraft Heinz CEO Bernardo Hees. "We are delivering product innovations, renovations and geographic expansion that positions Kraft Heinz to drive organic sales growth for the balance of 2017 and beyond. We also have good visibility on costs, savings and what we must do to deliver another year of profitable growth for The Kraft Heinz Company."