As retail sales are surging, Kraft Heinz Company is postponing its in-person investor day, previously planned for early May, in order to support social-distancing guidelines during the coronavirus (SARS-CoV-2) pandemic. It will reschedule the event at an appropriate time and place – ideally during the second half of 2020 once travel and meeting restrictions are hopefully lifted.
The company’s growth has accelerated in the wake of very strong consumer demand for its products, despite significant declines in foodservice-related sales around the world. First quarter net sales are now expected to increase approximately 3% and it is anticipated that organic net sales will rise approximately 6 percent. The difference between expected net sales and organic net sales is primarily attributable to prior year divestitures and currency impacts. This compares to previous expectations for a low single-digit rate of decline in Organic Net Sales versus the prior year.
At the same time, Kraft Heinz does not expect the full benefit from incremental sales in the quarter to flow through to net income/(loss) from continuing operations, Adjusted EBITDA, or earnings per share due to added expenses to meet this accelerated growth in addition to headwinds previously disclosed during its February earnings call.
“Rght now, our mission as a company has never been clearer: we have a huge responsibility to keep feeding the world,” said CEO Miguel Patricio. “Each leader on our team is focused on making the company and our global business as flexible and agile as possible to meet demand forecasts that are changing daily – and sometimes, hour by hour. We are inspired by our employees on the front lines – in our manufacturing plants and distribution centers, which all remain operational, and our in-store sales teams – who are working tirelessly each day to meet the demand and make sure consumers have the food and nourishment they need during these uncertain times.”
As announced on March 20, the Chicago- and Pittsburgh-headquartered company is donating $12 million globally to help people across the world secure food they need during this challenging time. As part of this commitment, it is making a donation valued at $6.6 million to Feeding America, the largest domestic hunger relief organization in the United States, to help support food banks located near Kraft Heinz offices and plants. The Feeding America donation consists of $1.9 million in cash and $4.7 million in products like Devour frozen ready meals Kraft Macaroni & Cheese.
Q1 2020 Results Due April 30
The company intends to release its first quarter 2020 financial results on April 30, 2020, before the stock market opens in New York. Kraft Heinz management will host a conference call at 8:30 AM Eastern Daylight Time that day to review and discuss its results. Interested parties may access it at ir.kraftheinzcompany.com.