By Senad Karaahmetovic
Kraft Heinz (NASDAQ:KHC) offered a worse-than-expected forecast for the adjusted full-year profit. Still, shares trade modestly higher in premarket trading after the company’s Q4 results topped analyst estimates.
KHC reported an adjusted EPS of $0.85 on revenue of $7.38 billion, beating the consensus for earnings of $0.78 on revenue of $7.24B. Organic revenue increased by 10.4%, driven by the surge in international organic revenue by 14.3%.
"We continue to see strength driven by our key growth pillars, while at the same time prioritizing investments in our brands and delivering on efficiencies," the company said in a press release.
For 2023, Kraft Heinz sees adjusted EPS at $2.71 (up or down 4 cents), missing the $2.76 consensus. Organic revenue is expected to increase in the range of 4-6%, easily above the 2.7% consensus.
“The Company anticipates high single-digit inflation for the year, with pricing and gross efficiencies contributing to Adjusted Gross Profit Margin recovery,” the company further stated.