Kraft Heinz (KHC) misses revenue estimates after US market share headwinds

Kraft Heinz (NASDAQ: KHC) is trading lower in early Wednesday trading after its revenue for the second quarter missed consensus estimates.

The food company reported Q2 EPS of $0.79, $0.03 better than the analyst estimate of $0.76. However, revenue for the quarter came in at $6.72 billion, up 2.6% YoY but below the consensus estimate of $6.82 billion.

At the time of writing, KHC is down around 0.7%, trading at $35.64.

The company said net sales were impacted by a 1.2 percentage point headwind from foreign currency and a negative 0.2 percentage point hit from acquisitions and divestitures.

"We delivered strong second-quarter results, growing net sales, profits and profitability. This is consistent with our strategy to accelerate profitable growth," said Kraft Heinz CEO and Chair of the Board Miguel Patricio.

However, Patricio acknowledged that the firm also faced headwinds within its US market share performance. "While we did face headwinds in the second quarter, particularly within U.S. market share performance, the action plans we laid out in the first quarter resulted in share trend improvement each month," he explained. "We expect these action plans, along with continued strong execution from our teams, to drive momentum through the second half of the year."

Looking ahead, the company sees its FY2023 earnings between $2.83 and $2.91 per share versus the consensus of $2.89.

By Sam Boughedda

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