Kraft Heinz tops estimates with pricing up 15% from a year ago

Kraft Heinz Company (NASDAQ:KHC) reported organic sales rose 10.4% in Q4 with a 15.2% rise in pricing offsetting a 4.8% decline in volume. The organic sales tally beat the consensus estimate of +9.2%.

Total sales increased 10.0% year-over-year during the quarter to $7.4B, including a positive 7.1 percentage point impact from a 53rd week during the quarter, a negative 4.6 percentage point impact from divestitures and acquisitions, and a negative 2.9 percentage point impact from FX swings.

Adjusted EBITDA increased 8.6% to to $1.7B.

"The results were even more impressive considering the difficult operating environment, with record levels of inflation and supply chain disruptions, to which our teams responded with agility," noted CEO Migel Patricio.

Looking ahead, Kraft Heinz (KHC) sees organic sales growth of 4% to 6% in 2023. The food giant anticipates high single-digit inflation for the year, with pricing and gross efficiencies contributing to a margin recovery. Adjusted EPS of $2.67 to $2.75 is anticipated vs. $2.77 consensus.

Shares of Kraft Heinz (KHC) gained 0.85% in premarket action to $40.21.