Kraft Heinz has joined rival CPG groups in hiking prices to manage soaring costs.
The US group pushed up prices more than 12 percentage points in its second quarter, which helped sales beat Wall Street expectations.
Organic net sales in the period increased 10.1% to $6.6bn (£5.5bn), while overall revenues fell 0.9% after taking into account currency headwinds and the impact of M&A.
However, volumes fell back 2.3 percentage points as a result of “supply constraints” and the higher prices, but the group said demand was “strong” in retail and foodservice channels.
As revealed by The Grocer last month, Kraft Heinz halted supply of its range of products to Tesco after failing to secure cost price increases with the UK’s largest supermarket, which called the hikes “unjustifiable”.
The two groups have since reached an agreement, with the range of Heinz baked beans and condiments back on Tesco shelves.
Kraft Heinz CEO Miguel Patricio said the company was “anticipating and adapting to changing market conditions” and managing inflation through “pricing realization and gross efficiencies”.
He added: “We delivered yet another quarter of strong results as we continue to successfully navigate near-term headwinds, enabled by further advancements of our long-term strategy.
“Though the environment remains fluid, we are better able to anticipate dynamic conditions, adapt to this constantly changing environment, and demonstrate our resiliency against new challenges.”
Kraft Heinz raised expectations for organic net sales growth to a high single-digit percentage, compared with mid-single digit previously.
Shares in the business plunged 7.5% to $35.80 as markets in New York opened.
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