Kraft Heinz Sales and Income Dropped in the First Quarter, Much Due to Inflation and Tariffs

Kraft Heinz reported a disastrous first quarter on April 29 in which sales dipped 6.5% and income decreased 11.2%. As a result, it’s lowering its full-year 2025 outlook to negative growth.

Sales in the first quarter were $5.999 billion, down from $6.411 billion in the same period of 2024. All three of its reporting segments – North America, International Developed Markets and Emerging Markets – contributed mid-single digit declines. North America led the dubious way with a 7% drop.

Net income was $714 million, 11.2% down from $804 million in the first quarter of last year. Volume/mix dropped 5.6 percentage points, with declines in each reportable segment. Unfavorable volume/mix was primarily driven by a decline in Lunchables. Higher pricing was taken in certain categories, primarily in coffee, to mitigate higher input costs.

“In today’s uncertain times, we are committed to controlling the controllables and making the necessary investments,” said CEO Carlos Abrams-Rivera, partly blaming inflation and tariffs. Somehow, he managed to say, “This quarter, we delivered results in line with our top line expectations despite growing market pressures. We are encouraged by these results, and we will build on the progress we have made to drive consistent growth and profitability.”

For the full year, the company now sees organic net sales in a range of down 1.5% to down 3.5% compared to the previous outlook of flat to down 2.5%.