The Kraft Heinz Company reported a 33 percent drop in net income attributable to shareholders for the third quarter of fiscal year 2018, but a 1.6 percent increase in net sales.

A diversified food company, Kraft-Heinz is the parent company of Oscar Mayer and the fifth largest turkey company in the United States.

In reporting its quarterly financial results on November 1, the company said the third quarter brought on solid gains from organic net sales growth and lower taxes versus the third quarter of fiscal year 2017 that were offset by investments in strategic capabilities, as well as higher overhead and input costs.

“We believe that our Q3 results are strong evidence that our commercial investments are working, with solid top line performance in the quarter,” said Kraft Heinz CEO Bernardo Hees. “This reflects our strong pipeline of marketing, new product and whitespace initiatives now in the marketplace, backed by investments in capabilities we have been making for brand and category advantage. While a number of one-off factors - as well as our desire to insure customer service - held back profit in the quarter, we remain confident that we are well-positioned to deliver sustainable, profitable growth going forward.”

Net income attributable to common shareholders decreased to $630 million and diluted EPS decreased to $0.51, primarily reflecting non-cash impairment charges and higher costs in the current period, partially offset by lower taxes.  

Net sales were $6.4 billion, up 1.6 percent versus the year-ago period, including a negative 1.6 percentage point impact from currency and a net 0.6 percentage point benefit from acquisitions and divestitures. Organic Net Sales increased 2.6 percent versus the year-ago period. Pricing was down 0.9 percentage points, driven by increased promotional support and key commodity-related pricing actions in the United States that more than offset increased pricing in Rest of World markets, primarily from highly inflationary environments. Volume/mix increased 3.5 percentage points, with growth in every segment and led by consumption growth in a majority of categories in the United States.

United States net sales were $4.4 billion, up 1.8 percent versus the year-ago period.