Kraft Heinz reported a £410M ($513M) drop in European sales, in the three months ended October 2. That was 14.5% lower than the same period last year. The firm blamed the drop in sales on changing currency values.
The firm’s ceo Barnardo Hees said it could improve its “retail execution”.
‘Respectable financial performance’
“Overall, our third quarter results are a good representation of where we are as a company,” said Hees. “While our financial performance is respectable, we continue to have the opportunity to improve our offerings and retail execution in several key markets and take our brands to places they don't currently compete.
“Our focus now is to finish 2016 strong and set the stage for another year of strong, profitable growth in 2017.”
The company’s biggest market – the US – reported a 1.2% sales drop, despite growth from the Lunchables brand and the macaroni and cheese products.
‘Favourable currency impact’
Elsewhere, sales in Canada rose 2% to £440M ($550M). Rest of World sales increased 4.4% to £648M ($809M), driven by “favourable currency impact”.
By Wednesday’s close of trading, shares in Kraft Heinz were up 12.6% compared with this time last year.
Meanwhile, companies Heinz and Kraft merged in March 2015, in a £100bn deal. At the time, it was estimated revenues would reach £22bn ($28bn).
Kraft Heinz third-quarter trading update – at a glance
- 1.5% global drop in sales
- Europe sales fall 14.5%
- Shares risen 12.6% compared with same period last year