The Kraft Heinz Company, a diversified food company and the fifth largest turkey processor in the United States, reported an 11 percent increase in net income for the first quarter for the 2018 fiscal year.
Kraft Heinz, which has turkey products sold under the Oscar Mayer and Lunchables labels, in its latest quarter, which ended on March 31, reported a net income of $993 million, up $100 million when compared to the first quarter of the 2018 fiscal year. The company’s financial results were released on May 2.
“Our first-quarter results were consistent with, if not slightly better than, the expectations we expressed in February,” said Kraft Heinz CEO Bernardo Hees. “The initial successes we’re seeing in the marketplace, together with the strong investments we’re making in marketing, new product innovation, and capability-building, give us increased confidence in delivering the top- and bottom-line growth we expect in 2018.”
Net sales were $6.3 billion, down 0.3 percent versus the year-ago period, including a 1.2 percentage point benefit from currency. Organic Net Sales decreased 1.5 percent versus the year-ago period. Pricing increased 1.0 percentage points, driven by price increases in the United States and Rest of World markets. Volume/mix decreased 2.5 percentage points.
United States net sales were $4.4 billion, down 3.3 percent versus the year-ago period. Pricing increased 0.8 percentage points as higher pricing was partially offset by the timing of trade spending versus the prior year period.
Canada net sales were $484 million, up 9.8 percent versus the year-ago period, including a favorable 4.8 percentage point impact from currency. Organic Net Sales increased 5.0 percent versus the year-ago period.
Kraft Heinz, according to the WATTAgNet Top Poultry Companies Database, processed 365 million pounds of live turkeys. The company has one slaughter plant and one processing plant.