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Kraft Heinz quarterly income falls by a third, shares slide

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Kraft Heinz quarterly income falls by a third, shares slide

Kraft Heinz quarterly income falls by a third, shares slide
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Mike Blake(Reuters)
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CHICAGO (Reuters) - Tater tots maker Kraft Heinz Co <KHC.O> missed third quarter earnings estimates, sending its shares down 9 percent, as steep commodity costs and other expenses overshadowed higher-than-expected sales.

Consumer goods companies have struggled in recent months to cope with skyrocketing costs for raw materials and transportation exacerbated by a shortage of truck drivers in the United States.

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Net income attributable to the company's shareholders slid 33.3 percent to $630 million (£484.5 million), or 51 cents per share, in the three months ended Sept. 29, from $944 million, or 77 cents per share, a year earlier.

Excluding items, the Chicago-based company earned 78 cents a share, falling short of the 81 cents analysts were expecting, according to data from Refinitiv IBES.

Pricing fell 0.9 percentage points during the quarter, as Kraft Heinz increased promotions and discounts on some of its products.

The company, which owns the Velveeta cheese and Heinz ketchup brands, said net sales rose 1.6 percent to $6.38 billion, topping Wall Street estimates of about $6.31 billion.

Kraft Heinz shares fell 9 percent at $50.93 in extended trading.

(Reporting by Richa Naidu; Editing by Bill Berkrot)

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