Nov 12 (Reuters) - Kraft Heinz on Thursday shared initial expectations for a return to growth in organic net sales next year, and for margin expansion in 2028 as the condiments maker backs CEO Steve Cahillane's turnaround plan.
Here are some details:
• The targets were shared ahead of the company's investor day, and come as Kraft Heinz invests in its brands to keep them in line with consumer expectations around health and protein, such as its high-protein version of Mac & Cheese
• Last week, Kraft Heinz said it would divest its North American coffee unit as it moves investments into more profitable, better-performing businesses
• Like other packaged food makers, the company has seen weak volumes after several quarters of price hikes
• This year, margins and adjusted profit have come under pressure from rising costs of freight and some raw materials, as oil prices rise due to the US war in Iran
• Cahillane warned last week that 2027 would see higher pricing due to input cost pressures
• Kraft Heinz expects organic net sales for fiscal 2027 to be relatively flat, with a return to growth in the second half, compared with current-year expectations for a fall of between 0.5% and 1.25%
• Earlier this year, Cahillane put on hold a planned split of the company after taking over as CEO, preferring to fix its problems first
• Kraft Heinz's shares were up nearly 2% in premarket trading
(Reporting by Juveria Tabassum in Bengaluru and Alexander Marrow in London; Editing by Devika Syamnath)