Today, the Kraft Heinz Company (NASDAQ: KHC) announced its fourth-quarter and full-year 2019 financial results. Despite beating Wall Street earnings estimates, shares of the company fell due to its disappointing quarterly sales.
Kraft Heinz reported for the fourth-quarter of 2019 net sales of USD 6.1 billion, down 5.1% from the same period in 2018 and an increased pricing of 2.0 percentage points on a year-to-year basis, with higher pricing in all segments despite Canada.
The Chicago-based Company further declared that the net income increased in the fourth-quarter of 2019 to USD 182 million and diluted earnings per share to USD 0.15. Additionally, the adjusted EBITDA decreased 6.6%, compared to the same period last year, to USD 1.6 billion.
Kraft Heinz CEO Miguel Patricio, who was only recruited last year to rebalance the tumbling company, said: “While our 2019 results were disappointing, we closed the year with performance consistent with our expectations, and driven by factors we anticipated.”
Since many customers changed their preferences to non-processed, organic food and the competition of cheaper private label brands and online shopping inclined, the Kraft Heinz Company has been struggling in recent years.
“We have taken critical actions over the past six months to re-establish visibility and control over the business. And we remain convinced Kraft Heinz has the potential to achieve best-in-class financial performance as we begin transforming our capabilities and making necessary investments in our brands based on deep consumer insights. Our turnaround will take time, but we expect to make significant progress in 2020, laying a strong foundation for future growth,” added the Chief Executive Officer.
The Kraft Heinz Company is one of the largest global food and beverage companies, operating for 150 years. With offering a diverse portfolio, the Company generated net sales of approximately USD 25 billion in 2019.