Turkey processor the Kraft Heinz Company, whose brands include Oscar Mayer and Lunchables, reported first quarter 2016 financial results on May 4 that reflected higher income, net sales and cost savings amid the ongoing integration of Kraft and Heinz.
The company reported operating income for first-quarter 2016 at $1.513 billion compared to $.509 billion during the same quarter in 2015. Overall net sales totaled $6.6 billion reflecting a 165 percent increase over the $2.478 billion reported in the same quarter in 2015. Adjusted earnings before interest, taxes, depreciation and amoritization (EBITDA) increased 21.3 percent versus the year-ago period to $2.0 billion.
Volume/product mix increased 0.8 percentage points in part due to strong growth in the Lunchables brand.
“We've had a solid start to the year. Our savings are coming in faster than anticipated and we're performing better where it matters most, with our customers and consumers in the marketplace,” said Kraft Heinz CEO Bernardo Hees. “But we still have a lot of work ahead. Consumption trends in a number of our core categories remain challenging, and we're entering a critical phase in our North American supply chain integration. As we implement our plans, we will keep our focus on profitable growth while continuing to put our consumers first.”