Kraft Heinz shares fall after second-quarter earnings

August 17 02:51 2015

Kraft Heinz reported second-quarter earnings and revenue on Monday following the closing bell. The company said its Kraft division saw a diluted quarterly earnings per share of 92 cents, on net revenues of $4.52 billion. Heinz, meanwhile, reported separate results. This included a 4.1 percent net sales decrease (from $2.73 billion in the comparable year-ago period to $2.62 billion in the second quarter 2015) due in part to a negative 9.4 percent impact from foreign exchange.Kraft products on sale in Chicago

“The company is focused on the difficult and challenging process of integrating our two businesses,” Kraft Heinz CEO Bernardo Hees, said in its earnings report. “We have a lot of hard work ahead of us as we continue to design our new organization, always putting our consumers first.” Shares of the company fell about 2 percent in after-hours trading following the earnings announcement.

The company didn’t have any earnings call planned for Monday, but said there would be a listen-only call for bondholders on Friday at 8 a.m. ET. Kraft Heinz said it “remains confident in its ability to deliver against its initial financial expectations for the merger of Kraft and Heinz.” This includes the expectation of about $1.5 billion in cost-savings by the end of 2017, the company said.

The results mark the company’s first since it merged earlier this year. Kraft Heinz shares have gone more than 8 percent higher since it started trading as a combined company in July. The deal—which was completed in July—is designed to drive synergies for the packaged foods giant. Kraft Heinz is now the third-largest food and beverage company in North America. On the Kraft side of the equation, the company said that division’s net revenues fell 4.9 percent in part because of a 1.4 percent foreign exchange impact.

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