Kraft Heinz quarterly income falls by a third, shares slide

Kraft Heinz quarterly income falls by a third, shares slide
FILE PHOTO: Heinz tomato Ketchup is show on display during a preview of a new Walmart Super Center prior to its opening in Compton, California, U.S., January 10, 2017. REUTERS/Mike Blake/File Photo -
Mike Blake(Reuters)
Text size Aa Aa

CHICAGO (Reuters) - Tater tots maker Kraft Heinz Co 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.

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)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.