US – Kraft Heinz has reported a 2.9% jump in third-quarter net sales to US$6.5 billion, which has enabled it to reaffirm its full-year outlook for organic sales growth of a high-single-digit percentage increase versus the prior year period.

This strong performance from the owner of Heinz ketchup was a result of a price increase of 15.4% points, with growth in both reportable segments that was primarily driven by price increases to mitigate rising input costs.

Kraft Heinz CEO and Chair of the Board Miguel Patricio said: “We delivered another quarter of strong results as we continue to successfully navigate a volatile environment. We are driving net sales growth across both North America and International segments, fueled by each of our three pillars of growth: our GROW platforms in North America, Foodservice, and Emerging Markets.

“I’m very proud of what we have been able to deliver thus far, but our work continues. We remain focused on advancing our long-term strategy, and believe we are well-positioned to drive profitable growth and generate attractive returns for our stockholders.”

Its Adjusted EBITDA decreased 5.5 percent to US$1.4 billion, with performance including an unfavorable impact from divestitures and acquisitions of 6.1 percentage points and an unfavorable 1.4 percentage point impact from currency.

The organic net sale increased by 11.6 percent versus Q3 2021 while the net income decreased by 40.8 percent to US$435 million primarily driven by higher non-cash impairment losses, unfavorable changes in other expenses/(income), and the lower Adjusted EBITDA.

Year-to-date net cash provided by operating activities was US$1.5 billion, down 38.0 percent versus Q3 2021, primarily driven by higher cash outflows for inventories primarily related to stock rebuilding and increased input costs, and lower Adjusted EBITDA.

These factors, both for net income and YoY net cash, were partially offset by lower interest expenses primarily due to debt extinguishment costs in the prior year period.

Meanwhile, the company has raised the lower-end estimate for 2022 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from at least US$5.8 billion to US$5.9 billion.

The full year’s outlook reflects an increase in foreign currency headwinds based on current exchange rates, the impact of divestitures versus the prior year, strong organic net sales, as well as the company’s ongoing efforts to manage inflationary pressures, including unlocking gross efficiencies, as it continues to invest in long-term growth.

Due to the potential impact of supply chain challenges faced by the industry, the company expects to come in at the lower end of the new adjusted EBITDA range.

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