Revenue expectations for upcoming quarters
Kraft Heinz operates in four geographic segments: the United States, Canada, Europe, and the Rest of World. The company’s US segment contributes 71% of the company’s total net sales.
Analysts expect KHC’s revenue to be $6.8 billion in 2Q16. This represents a fall of 5% compared to revenue of $7.1 billion in 2Q15. The company was ahead of estimates in the last two quarters. For 2H16, revenue expectations don’t look positive either.
For 3Q16, KHC’s revenue is projected to be in line with the same quarter last year, and for 4Q16, it’s expected to fall by 3%. For 2016, analysts expect the company’s revenue to be ~$26.7 billion, a fall of 3% compared to 2015. Currency headwinds could impact Kraft Heinz’s results, as the company operates internationally.
Positive expectations for new products
The company has positive expectations for its recent launches in Europe to grow its condiments and sauces market. In March, it launched Heinz Seriously Good Mayonnaise in the United Kingdom, Spain, Italy, and Germany. In Italy, the company launched Plasmon Nutrimune, which consists of proprietary functional ingredients that improve babies’ immune systems.
The company also added a new line of premium pasta sauces under the Classico Riserva brand. These products are made with no artificial ingredients or added sugar.
Peers’ revenue expectations
- Flowers Foods’ revenue for 2Q16 is expected to rise by 6%.
- ConAgra Foods’ revenue for 1Q17 is projected to fall by 2%.
- Campbell’s revenue for 4Q16 in supposed to be comparable to 4Q15.
Let’s now see what earnings expectations are for KHC’s upcoming quarters.