Tuesday , August 9 2022

Kraft Heinz shares fall as appetite


The Heinz Ketchup bottle is sitting between a box of Kraft macaroni and a cheese and bottle of original Creative Barbecue Sauce on a grocery store shelf in New York City, New York, USA March 25, 2015.Image copyright

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Kraft Heinz is one of the world's largest food companies

The price of the sharing of Kraft Heinz has turned to low-entry signs in terms of weakening customer addition for the processed foods of the company.

The huge US food stock dropped by 28% after notifying the 2018 flat sales and said he would write $ 15.4bn (£ 11.8 billion) of Kraft and Oscar Mayer brands.

The company also stated that its accounting practices were subject to investigation.

But he said he did not expect the investigation to be "material" to financial consequences.

Kraft Heinz is one of the world's largest food companies, with brands that include its eponymous cage, Jello-O, Amoy and Wattie.

It was created in 2015 by joining Kraft Foods and HJ Heinz, managed by Berkshire Hathaway and 3G capital investment company, known for its cost cutting methods for businesses .

In Kraft Heinz, that strategy has achieved mixed results.

The company reported for a $ 10.2 billion loss for 2018, having driven by selling an apartment of $ 26.2 billion and the brands will be written.

& # 39; too optimistic & # 39;

Kraft Heinz blamed for a 2018 deficit on advanced manufacturing and logistics costs.

"We are extremely optimistic about delivering savings that did not apply by the end of the year." Chief executive Kraft-Heinz, Bernardo Hees said.

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Brands at merger 2015

Kraft Heinz said that the writing reflects expectations for lower profits going on.

The results were also affected by the decision to cut prices in the United States in an attempt to boost shoppers demand.

Mr Hees said he was encouraged by a desire and regeneration for brands such as creamy cheese Philadelphia. The company also plans to increase prices this spring.

But executive officers warned that profit growth would not return until 2020, as the results of the company were hit by a weaker first quarter, money fluctuations and selling parts of businesses.

Increasing competition

Kraft Heinz, like others in the industry, faces increasing competition from less expensive brands, retailers, as well as increasing consumer choice for unprocessed food.

"Our industry has been and it is likely to continue to challenge," said Mr Hees.

The shares of the company, which have been slipped for approximately two years, have dropped below $ 35 Friday.

The battles also affect shares in competitive food makers, including General Mills, Conagra Brands, Unilever a Nestle SA.

Kraft Heinz also recorded $ 25m in additional quarters in the fourth quarter following an internal review triggered by an inquiry from the Securities and Exchange Commission UDA to accounting practices in its procurement department.

"The company continues to cooperate fully with the Commission Securities and Exchange Exchange," he said.

"At present, the company does not expect the issues that are subject to the investigation to be relevant to the current period or any financial statements previous period. "

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