(Reuters) – Kraft Heinz Co beat third-quarter sales estimates on Wednesday, as higher product prices offset pressure from reduced demand for its packaged meals and condiments.
Global packaged foods makers have been steadily raising product prices over the past year to counter increased costs tied to labor, ingredients and transportation at a time when consumers are steeling their wallets against skyrocketing energy and food prices.
Although the preference for cooking at home, which developed during the pandemic, has proven to be relatively sticky so far, cracks in demand are beginning to emerge as shoppers hunt for more affordable alternatives and analysts caution that packaged makers may be reaching their ceiling on price hikes.
Shares of the Jell-O maker rose 3% in premarket trading.
The company reported net income attributable to common shareholders of $432 million, or 35 cents per share, for the quarter ended Sept. 24, compared with $733 million, or 59 cents per share, a year earlier.
The Heinz ketchup maker’s net sales rose to $6.51 billion in the third quarter from $6.32 billion a year earlier. Analysts on average had expected $6.27 billion, according to IBES data from Refinitiv.
(Reporting by Mehr Bedi and Granth Vanaik in Bengaluru; Editing by Maju Samuel)
