Kraft Heinz, Kellogg Benefit From Pandemic

Oct. 29, 2020
Two food industry giants reported quarterly results that showed a continuing boost from the pandemic.

Two food industry giants reported quarterly results that showed a continuing boost from the pandemic.

Kraft Heinz booked profit for the third quarter of $597 million, a 34% drop from a year earlier. However, if losses from recent divestitures are removed from consideration, profit actually rose 1.4%.

CEO Miguel Patricio told investors that the pandemic has allowed it to attract consumers, especially younger ones, to its established brands. He said Kraft Heinz would seek to cut costs and spend more money on R&D and marketing.

Kellogg Co. reported a sales increase of 1.7% for the third quarter, but said the effective rate was actually 4.5% without asset sales and the effect of currency conversions. Operating profit as booked was 55.9% higher, but most of that was due to lower one-time charges; if those are disregarded, profit went down 9.7% due to higher spending on marketing and “performance-based compensation.”

Kellogg raised its guidance for a rise in full-year organic sales from 5% to 6%.

Sponsored Recommendations

Learn About: Micro Motion™ 4700 Config I/O Coriolis Transmitter

An Advanced Transmitter that Expands Connectivity

Micro Motion™ G-Series Coriolis Flow and Density Meter

Micro Motion G-Series: market-leading compact design featuring advanced process diagnostic capability.

Embracing Sustainability using Advanced Measurement Instrumentation

A practical guide to greeningyour brewing operationsusing advanced measurementinstrumentation.

Get Hands-On Training in Emerson's Interactive Plant Environment

Enhance the training experience and increase retention by training hands-on in Emerson's Interactive Plant Environment. Build skills here so you have them where and when it matters...