© Reuters. FILE PHOTO: Bottles of Heinz Tomato Ketchup, owned by the Kraft Heinz Company, are seen for sale in Queens, New York, U.S., November 16, 2021. REUTERS/Andrew Kelly GLOBAL BUSINESS WEEK AHEAD
(Reuters) – Kraft Heinz (NASDAQ:) Co on Wednesday raised its forecast for annual organic sales growth, benefiting from higher product prices and sustained demand for its packaged meals and condiments.
Packaged food makers including Kraft Heinz and Campbell Soup (NYSE:) Co are still seeing strong demand for their quick-fix meals, sauces and cooking essentials that boomed in popularity during lockdowns.
The Philadelphia Cream Cheese maker forecast 2022 organic revenue growth of mid-single-digit percentage, compared with its prior outlook for a low-single-digit percentage increase.
In a further boost, consumers so far have not shown much resistance to price increases to combat a worldwide surge in costs of labor, raw material and freight. But Kraft Heinz stopped short of raising its core earnings forecast for 2022.
The company’s revenue fell to $6.05 billion in the first quarter ended March 26 from $6.39 billion a year earlier. Analysts on average had expected $5.83 billion, according to IBES data from Refinitiv.
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