Kraft Heinz posts strong third quarter results (sales up 6.3%)

Kraft Heinz has reported a strong Q3 2020 performance across all six business units, including 6.3% growth in consolidated net sales to US $6.44 billion. The good results of the retail and e-commerce channels have offset the contraction in the foodservice sector.

Further growth indicators include adjusted EBITDA, which grew by 13.5% to $1.667 billion compared to $1.469 billion in Q3 2019, and net cash earned from operating activities since the beginning of the year, up 67% to $3.3 billion.

The group’s main market is the United States, where turnover from packaged products (food and condiments) rose by 7.4% to $4.7 billion.

Sales in other international markets in general grew by 4.6% to $1.3 billion, although the Canadian business suffered a 1% decline ($406 million).

The company recorded strong growth in the retail and e-commerce channels, compensating for the contraction in the foodservice category.

In September, Kraft Heinz sold several cheese brands (Breakstone’s, Knudsen, Polly-O, Athenos, Hoffman’s and Cracker Barrel) to the French group Lactalis for $3.2 billion. Along with the brands, Kraft Heinz has also sold three production facilities located in California, Wisconsin and New York, as well as a distribution centre.