Kraft Heinz shares edge up as sales fall less than expected

 
Courtney Goldsmith
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Kraft Heinz makes a range of packaged food products (Source: Getty)

Shares in Kraft Heinz edged up in after-hours trading as the company behind Heinz ketchup and Jell-O said sales fell less than analysts expected in the second quarter

The US food giant reported net sales were down 1.7 per cent to $6.7bn (£5.1bn) compared with the previous year. Net income was $1.2bn, or 94 centper share, compared with $770m in 2016.

Shares in Kraft were up 0.57 per cent to $87 in after-hours trading.

The pressure has been on for Kraft following a failed $140bn takeover of Unilever in February. Kraft, which also faces the challenge of changing consumer tastes, “amicably agreed” to withdraw the bid just two days after details of the deal leaked.

Cheif executive Bernardo Hees said:

As expected, our second quarter results were sequentially better than our first quarter, and we expect this momentum to continue into the second half of the year.

Our plan from the start has been to drive strong cost savings to fuel investments in people, capabilities and brands that can lead to sustainable, profitable growth. That's what we see happening now, and expect to continue going forward.

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