Proactive Investors - Kraft Heinz (NASDAQ:KHC) Co (NASDAQ:KHC, ETR:KHNZ) shares fell by more than 5% in early trade on Wednesday as the food and beverage manufacturer reported a larger-than-expected decline in fourth quarter sales and projected slower sales growth for 2024.
For the quarter, Kraft Heinz saw its sales fall by 7.1% year-over-year to $6.86 billion, below the consensus estimate of $6.97 billion.
Adjusted earnings per share (EPS) of $0.78 were down 8.2% but narrowly ahead of estimates of $0.77.
"In the fourth quarter, the industry faced headwinds that were driven by ongoing consumer pressure," Kraft Heinz CEO Carlos Abrams-Rivera commented.
"Looking ahead, we expect some of these pressures to dissipate, particularly as the reduction in Supplemental Nutrition Assistance Program (SNAP) benefits is lapped."
Looking ahead to 2024, Kraft Heinz expects its sales to grow at a slower rate than they did last year. It projected growth between 0% and 2% over the previous year, with a “positive contribution” expected from price during the year.
Its sales grew by 3.4% to $26.64 million for 2023, boosted by an 8.9% increase in prices with mitigated rising costs. Analysts had expected full-year sales of $26.75 billion.
Its adjusted EPS was $2.98, up 7.2% year-over-year and ahead of estimates of $2.96.
For 2024, Kraft Heinz projected adjusted EPS growth of 1% to 3% or in the range of $3.01 to $.3.07, compared to the consensus estimate of $3.01.
Shares of Kraft Heinz were down 5.3% at $34.23 mid-morning on Wednesday.