Kraft Heinz net earnings up 17.5 percent in Q2
Net income was up for turkey processor’s parent company, but company’s net sales were down
Kraft Heinz, parent company of Oscar Mayer, reported a 17.5 percent increase in net income during the second quarter of fiscal year 2017.
The diversified food company released its financial results on August 3.
The company reported a net income of $1.92 billion for the quarter, up from the $1.64 billion reported during the second quarter of fiscal year 2016.
While Kraft Heinz reported an increase in net income, it’s net sales for the quarter were down to $6.68 billion, a decrease of about 1.7 percent when compared to the second quarter of the previous fiscal year.
According to a press release from the company, the net income improvements were partially attributed to cost savings initiatives and redemption of preferred stock in the prior year.
“As expected, our second quarter results were sequentially better than our first quarter, and we expect this momentum to continue into the second half of the year,” Kraft Heinz CEO Bernardo Hees said. “Our plan from the start has been to drive strong cost savings to fuel investments in people, capabilities and brands that can lead to sustainable, profitable growth. That’s what we see happening now, and expect to continue growing forward.”
According to the WATTAgNet Top Poultry Companies Database, Kraft Heinz/Oscar Mayer is the eighth largest turkey company in the United States, having slaughtered 267 million pounds of live turkeys in 2016. The company has one slaughter plant, one processing plant and one cooking facility.