(Reuters) – Kraft Heinz Co raised its forecast for annual organic sales growth on Wednesday, benefiting from higher product prices and resilient demand for its packaged meals and condiments.
U.S. packaged food makers looking to insulate their margins from a global surge in costs of labor, raw material and freight have been hiking up product prices over the past year, but have yet to see any consumer pushback.
In a further boost, Kraft Heinz is still seeing strong demand for their quick-fix meals, sauces and cooking essentials that soared in popularity during lockdowns.
The Philadelphia Cream Cheese maker forecast 2022 organic revenue to increase by a high single-digit percentage, compared with its prior outlook for a mid single-digit percentage increase.
Still, net sales fell to $6.55 billion in the second quarter ended June 25, from $6.62 billion a year earlier. Analysts, on average, had expected $6.39 billion, according to IBES data from Refinitiv.
(Reporting by Mehr Bedi in Bengaluru; Editing by Saumyadeb Chakrabarty and Shailesh Kuber)
