- Kraft Heinz Company (NASDAQ:KHC) shares are gaining Wednesday morning as its first-quarter results surpassed expectations.
- KHC reported first-quarter FY23 sales growth of 7.3% year-on-year to $6.49 billion, beating the consensus of $6.40 billion.
- Sales in North America rose 6.2% Y/Y, and International climbed 11.1%.
- Gross profit increased by 9.4% Y/Y to $2.11 billion, with the margin expanding 62 points to 32.6%.
- Operating margin for the quarter was 19.2%, and the operating income for the quarter increased 11.4% to $1.2 billion.
- Adjusted EBITDA rose 10.3% to $1.5 billion. Adjusted EPS of $0.68 beat the analyst consensus of $0.60.
- Kraft Heinz held $826 million in cash and equivalents as of April 1, 2023. Net cash provided by operating activities for the quarter totaled $486 million.
- The company’s Board of Directors declared a regular quarterly dividend of $0.40 per share, payable on June 30, 2023, to stockholders of record as of June 6, 2023.
- Outlook: Kraft Heinz reaffirmed its expectation of 2023 organic net sales growth of 4-6% versus 2022.
- The company raised FY23 adjusted EPS outlook from $2.67-$2.75 to $2.83-$2.91 versus the consensus of $2.72.
- Price Action: KHC shares are trading higher by 4.5% at $41.22 on the last check Wednesday.
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