Oct 26 (Reuters) – Kraft Heinz reported quarterly sales above expectations on Wednesday as higher prices for its products offset falling demand for its prepared meals and condiments.
Manufacturers of prepared food products have steadily raised prices over the past year to counter rising labor, ingredient and transportation costs, at a time when consumers are more careful about their spending in the face of soaring energy and food prices.
Although the taste for home cooking, which has grown during the COVID-19 pandemic, has proven to be relatively stable so far, demand pressures are starting to appear as consumers seek out more affordable alternatives.
Analysts warn packaged goods makers could hit their ceiling on price increases.
The title of the manufacturer of Philadelphia cream cheese and Heinz ketchup gained 3% in pre-market trading.
Revenue reached $6.51 billion in the third quarter, up from $6.32 billion a year earlier.
The group also reported net income, group share, of $432 million, or $0.35 per share, for the quarter ended September 24, down from $733 million, or $0.59 per share, published a year earlier.
Analysts on average had expected $6.27 billion, according to IBES data from Refinitif. (Reporting Mehr Bedi and Granth Vanaik in Bangalore; French version Diana Mandiá, editing by Kate Entringer)
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