Kraft Heinz has raised profit expectations for the year as a hike in prices and sustained at-home demand helped the US food giant battle escalating inflation.
The ketchup and beans maker joins global rivals such as Unilever and Nestlé in raising prices in a bid to protect margins and lift revenues in the face of spiralling labour, packaging and commodity costs.
Organic net sales rose in the third quarter by 1.3% to $6.3bn (£4.6bn), despite the group going up against strong figures a year ago as ongoing lockdowns drove consumer demand for its products.
Kraft Heinz said the better-than-expected performance was enabled by improvements in its operating model and “an agile approach to managing supply and services through volatile markets”.
The group increased 2021 adjusted EBITDA expectations from at least $6.1bn to more than $6.2bn thanks to price rises to manage the inflationary pressures.
“I am incredibly proud of our Kraft Heinz team for delivering another quarter of results that exceed our expectations, even as we face the ongoing challenges of the pandemic and, now, escalating inflation,” said Kraft Heinz CEO Miguel Patricio.
“We are effectively adapting to near-term challenges while transforming our business and rejuvenating our iconic brands to better serve consumers for the long term. We still have much to do, but our momentum is strong and our strategy to bring agility to our scale is working, which is why we are increasing full-year expectations.”