Kraft Heinz (NASDAQ:KHC) reported its third-quarter earnings on Wednesday, topping profit estimates but missing sales expectations for the quarter. However, the company narrowed its full-year outlook for organic net sales and raised its adjusted EPS range.
The food business reported Q3 earnings of $0.72 per share, $0.06 better than the analysts' estimate of $0.66, while revenue for the quarter came in at $6.57 billion, up 1% YoY but below the consensus estimate of $6.72 billion.
KHC's gross profit margin increased 568 basis points to 34% during the quarter.
The company said its third-quarter results were marked by net sales growth across each of its three core pillars: Foodservice, Emerging Markets, and U.S. Retail Grow Platforms.
“At the same time, we continue to improve productivity across the value chain, reinvesting gross efficiencies back into marketing, technology, and research & development. These investments remain a key part of our strategy as we build the business for continued success,” said KHC CEO Miguel Patricio.
Looking ahead, the company now sees full-year 2023 organic net sales growth of 4% to 6% versus the prior year, closer to the lower end of the range at approximately 4%. In addition, full-year 2023 adjusted EPS is now expected to be in the range of $2.91 to $2.99, higher than the previous range of $2.83 to $2.91
KHC shares are up around 0.75% at the time of writing.