Key facts
- Kraft Heinz expects organic net sales for fiscal 2027 to be relatively flat, with growth returning in the second half.
- The company expects organic net sales to fall between 0.5% and 1.25% in the current year.
- Kraft Heinz also shared initial expectations for margin expansion in 2028.
- CEO Steve Cahillane warned last week that 2027 would see higher pricing due to input cost pressures.
- Kraft Heinz's shares were up nearly 2% in premarket trading, according to the report.
Kraft Heinz said on November 12 that it expects organic net sales for fiscal 2027 to be relatively flat, with a return to growth in the second half of the year, according to Reuters. The condiments maker also shared initial expectations for margin expansion in 2028. The targets were shared ahead of the company's investor day and back CEO Steve Cahillane's turnaround plan.
The company expects organic net sales to fall between 0.5% and 1.25% in the current year, the report said. Kraft Heinz has invested in its brands to keep them in line with consumer expectations around health and protein, including a 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, the report said.
Cahillane warned last week that 2027 would see higher pricing due to input cost pressures. Earlier this year, he 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, the report said.