Kraft Heinz's share price rises after it reports net sales of $7.12bn in fourth quarter results as it says integration is on track

 
James Nickerson
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Food Giants Kraft And Heinz To Merge
Kraft Heinz said it is working to implement proven management methodologies (Source: Getty)

Kraft Heinz reported fourth quarter net sales having increased due to the merger of Kraft and Heinz, pushing its share price up more than three per cent in after hours trading.

The company reported fourth quarter earnings per share of 23 cents in the 14 weeks to 3 January, up from a loss of four cents per share in the same period a year ago.

Operating income increased 265.6 per cent to $1.29bn, up from $352m in the same quarter a year ago.

Read more: Kraft Heinz cooks up net sales of $6.1bn

Meanwhile, the company, known for kitchen staples like Heinz Tomato Ketchup, Philadelphia cream cheese and Maxwell House coffee, reported net sales to have reached $7.12bn, up 154.5 per cent from the same period a year ago.

However, pro forma net sales, which is not the same as sales under generally accepted accounting principles but represents how the companies would have performed if they had been combined for both periods, for the company actually fell five per cent from $7.496bn.

The company pointed to the negative impact from currency changes as a key reason behind the pro forma net sales figure.

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“The important integration work and financial results we delivered in 2015 set a solid base on which we can drive sustainable growth across our global business,” said Kraft Heinz chief executive Bernardo Hees.

“We are working to implement proven management methodologies, remove inefficient spending and streamline our organisation, while investing in our brands and innovation to drive long-term profitable growth. We believe that all of this positions Kraft Heinz for a strong performance in 2016 and beyond," he added.

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