Kraft Heinz sees Q1 profit boosted by Covid-19 stockpiling
The maker of tomato ketchup reported higher-than-expected quarterly earnings on Thursday due to consumers stockpiling its products amid the Covid-19 crisis.
![Kraft Heinz](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/bg kraft heinz 84571.png/jcr:content/renditions/original-size.webp)
Kraft Heinz recorded higher-than-expected first quarter (Q1) earnings on Thursday, with the company putting the surge in sales and profits down to consumers stockpiling its products amid the Covid-19 crisis.
The maker of Heinz tomato ketchup and Kraft Macaroni & Cheese said that its Q1 sales hit $6.16 billion, slightly exceeding Wall Street analysts’ consensus estimate of $6.14 billion, according to IBES data compiled by Refinitiv.
Despite the rise in quarterly sales, Kraft Heinz noted that the lift in revenues was unlikely to translate into a stronger bottom line because of costs related to meeting the increase in demand.
The company said that around 7 percentage points of sales growth were the result of increased consumer demand related to the Covid-19 crisis, with shoppers stockpiling and panic buying due to government imposed lockdowns around the globe.
‘Our first quarter results reflect how strongly our employees have responded to the global Covid-19 challenge and the exceptional level of service our teams have demonstrated during this critical time; and for that, it is an incredible privilege to be part of the Kraft Heinz Company,' Kraft Heinz CEO Miguel Patricio said.
‘Going forward, we have a singular focus: to meet the demand for our products and ensure consumers have the food and nourishment they need during these uncertain times,’ he added.
2020 outlook remains uncertain, says Kraft Heinz
Looking ahead, the company forecast low to mid-single-digit organic net sales growth and mid-single-digit constant currency adjusted EBITDA growth for the second quarter.
The company admitted that its outlook reflected incremental demand from retail customers due to increased consumption amid government imposed lockdowns in developed markets and reduced foodservice channels globally.
‘The impact of the COVID-19 pandemic on the company’s full-year 2020 results remains uncertain,’ the company said.
How to trade stocks with IG
Looking to trade Royal Dutch Shell and other stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:
Create an IG trading account or log in to your existing account
Enter ‘Royal Dutch Shell’ in the search bar and select it
Choose your position size
Click on ‘buy’ or ‘sell’ in the deal ticket
Confirm the trade
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Shares-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.