Kraft-Heinz Profit Soars From Cost Cutting
Kraft Heinz Co, the maker of Kraft cheese, Heinz ketchup and Jell-O, reported a quarterly profit that quadrupled, helped by aggressive cost-cutting measures and low commodity costs.
Shares of the company, created when Kraft Foods Group merged with H.J. Heinz Co in July last year, rose 4.2 percent in extended trading on Thursday.
Net income attributable to the company jumped to $770 million, or 63 cents per share, in the second quarter ended July 3, on a pro forma basis, which assumes that the two companies were a single entity in both periods.
The company earned $186 million, or 15 cents per share, a year earlier.
Pro-forma net sales fell 4.7 percent to $6.79 billion, in-line with the average analyst estimate of $6.79 billion, according to Thomson Reuters I/B/E/S. (Reporting by Siddharth Cavale in Bengaluru; Editing by Sriraj Kalluvila)