Kraft Heinz Co (KHC) is a leading food and beverage company with a broad portfolio of famous brands. Kraft Heinz had a great start to 2021, announcing impressive financial results for the first quarter ended March 27.
However, the company’s growth has decelerated since then. Kraft Heinz stock, which touched a high of $44.95 in May, is currently trading around $36.80. The 52-week range of the stock is $28.56-$44.95, while its market value is approx. $45.057 billion.
The slow growth is also reflected in its profit and sales for the second quarter. Earlier this month, Kraft Heinz posted mixed financial results for Q2, mainly due to tough comparison with the same period of 2020 when it enjoyed strong demand for its products during the lockdown restrictions. Nevertheless, Q2 results were still better than expectations.
Latest Financial Performance
Kraft Heinz reported adjusted earnings of 78 cents per share for the three months ended June 26, marginally down from 80 cents per share in the comparable period of 2020. Total revenue for the quarter inched down 0.5 percent on a year-over-year basis to $6.6 billion.
The results exceeded the consensus forecast of 72 cents per share for earnings and $6.55 billion for revenue. Looking forward, Kraft Heinz expects its Q3 revenue to grow in the mid-single-digit percentage.
Kraft Heinz’s chief executive officer Miguel Patricio seemed satisfied with the latest quarterly performance. He said the results indicate that Kraft Heinz’s financials for 2021 will exceed its initial expectations.
While Kraft Heinz has posted mixed Q2 results, Patricio’s optimistic remarks suggest the stock could rebound in the coming quarter. However, investors need to wait for some time to see whether Kraft Heinz can make a recovery.