Kraft Heinz

Grocery & Restaurants

Kraft Heinz said the company was hiking prices to increase their margins, implying they would stick even as inflation decreases

Kraft Heinz’s CFO predicted the company’s margins would increase because “as we continue to price inflation, the inflation events that start to ease, that might put us in a better position for us to continue to recover the margin.” “Andre – Executive Vice President and Global Chief Financial Officer: Yeah. Thanks for the question. Look, this is by very far the highest impact. But other than the need that you have the growth efficiency. Remember that you have the $2 billion that (indiscernible) have communicated and that we are on track to deliver. We delivered the first two years in line with the expectation. And year three, which is now — we continue to be on track. So, that certainly continues. Mix effect is relatively small. It’s now in the quarter, slightly positive as we continue to accelerate the growth platforms where we have higher margins. But the number in the quarter is not significant. So, really in this quarter, it’s about the dilutive effect. But again, moving forward, we should expect to continue to deliver the growth efficiencies. And as we continue to price inflation, the inflation events that start to ease, that might put us in a better position for us to continue to recover the margin. (Kraft Heinz Q2 2022 Earnings Call, 7/27/2022)

Kraft Heinz’s CFO bragged that some of its sales were up 14% from Q2 2019, saying “price also has a lot to do with the growth that that we’re seeing in Q2.”“Andre Maciel – Executive Vice President and Global Chief Financial Officer: Thanks for the question. I think there are two things. One is, I want to highlight that was not in the prepared remarks that our Foodservice now in Q2 is 14% higher than Q2, 2019, which is really remarkable. There is a component of price, right? We’ve been pricing that channel consistent to what we’ve been doing in retail. So, price also has a lot to do with the growth that that we’re seeing in Q2. But the volume continues to grow as we expand distribution. We have been getting market share in the — where we have the information in developed markets in North America, Europe and Central.” (Kraft Heinz Q2 2022 Earnings Call, 7/27/2022)