PITTSBURGH — Kraft Heinz Co. raised its annual forecasts after posting better-than-expected results in the second quarter. The CPG company said it would increase investment to build on efforts to revive the business and regain market share.
Kraft Heinz reported a loss of $5.4 billion, or $4.60 a share, compared with a loss of $7.8 billion, or $6.60 a share, a year earlier.
Revenue declined 1.4% to $6.2 billion. North American sales were down 2.7%, while sales in international developed markets declined 3.5%. Emerging markets saw a 10% increase in sales.
The declines were attributed to factors including lower volume, inflation in manufacturing and logistics costs, and higher advertising expenses.
Kraft Heinz raised prices in each of its segments to offset higher input costs, primarily in coffee and ready-to-drink beverages.
“We delivered another solid quarter, with results that exceeded our expectations across U.S. retail, global away from home, and emerging markets,” CEO Steve Cahillane said in an August 5 statement. “Our brands are resonating with consumers, and our share performance is improving. The progress we are seeing gives us the confidence to raise our organic net sales outlook for the year.”
Kraft Heinz now expects an increase in annual organic sales in the range of 0.5% to 2.0%, compared with its prior view of a 1.5% to 3.5% decline. It also expects annual adjusted earnings per share of $2.03 to $2.09, compared with its prior forecast of $1.98 to $2.10.
Cahillane said the company is boosting its incremental investments in 2026 by $100 million, to $700 million. The investment will allow Kraft Heinz to innovate as it leans into protein-heavy foods and electrolyte-infused drinks to attract consumers searching for healthier food and beverage options.
“We have seen that our brands respond well when we invest behind them. By accelerating these investments, we position the business even more favorably as we enter 2027,” he said.
Cahillane took the reins of Kraft Heinz in January with expectations that he would implement the board’s plan to split off underperforming parts of the business and regroup as a leaner, more agile company. Within weeks, however, he said he had recognized opportunities in keeping and updating popular brands and cutting prices.
Kraft Heinz’s portfolio includes Heinz ketchup, Philadelphia cream cheese, Kraft Mac & Cheese, Oscar Mayer hot dogs, Lunchables and Maxwell House coffee.
