Upcoming AWS Coverage on Central Garden & Pet Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 17, 2017 / Active Wall St. announces its post-earnings coverage on The Kraft Heinz Co. (NASDAQ: KHC). The Company reported its first quarter fiscal 2017 financial results on May 03, 2017. North America's third-largest food and beverage Company lagged behind sales and earnings estimates numbers. Register with us now for your free membership at:

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One of Kraft Heinz's competitors within the Food - Major Diversified space, Central Garden & Pet Co. (NASDAQ: CENT), reported on May 03, 2017, its financial results for its fiscal second quarter ended March 25, 2017. AWS will be initiating a research report on Central Garden & Pet in the coming days.

Today, AWS is promoting its earnings coverage on KHC; touching on CENT. Get our free coverage by signing up to:

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Earnings Reviewed

For the period ended April 01, 2017, Kraft Heinz' net sales were $6.36 billion, down 3.1% versus net sales of $6.57 billion in Q1 2016, including an unfavorable 0.4% impact from currency. The Company's pricing increased 1.0% as price increases in Rest of World markets as well as the United States more than offset an unfavorable impact from promotional timing versus the prior-year's same period. Volume/mix decreased 3.7% as declines in North America more than offset growth in Rest of World markets and Europe. The Company's reported numbers came in below analysts' consensus of $6.46 billion.

Kraft Heinz's adjusted EBITDA decreased 3.4% on a y-o-y basis to $1.89 billion, including an unfavorable 1.0% point impact from currency.

For Q1 2017, Kraft Heinz's net income attributable to common shareholders decreased marginally to $893 million compared $896 million in Q1 2016, while EPS was flat at $0.73. The Company's adjusted EPS increased 15.1% on a y-o-y basis to $0.84, primarily due to benefits from the refinancing of Series A Preferred Stock. Kraft Heinz's earnings numbers lagged behind Wall Street's estimates of $0.86 per share.

Segmented Operating Results

During Q1 2017, Kraft Heinz's United States net sales were $4.55 billion, down 3.5% compared to net sales of $4.72 billion in Q1 2016. The regions' pricing increased 0.7% primarily due to price increases in cheese, while Volume/mix decreased 4.2% from a combination of consumption weakness across categories, primarily driven by calendar shifts, as well as select distribution losses in the club channel. United States segment's adjusted EBITDA decreased 1.4% on a y-o-y basis to $1.5 billion, primarily reflecting gains from cost savings initiatives and pricing that were more than offset by the decline in volume/mix as well as unfavorable key commodity costs.

For Q1 2017, Kraft Heinz's net sales from Canada declined 12.2% to $443 million compared to net sales of $504 million in Q1 2016, despite a favorable 2.7% impact from currency. The segment's organic net sales decreased 14.9% on a y-o-y basis, reflecting later implementation of go-to-market agreements with key retailers. Pricing was down 1.0% to changes in promotional spending levels versus the prior year, while volume/mix decreased 13.9% driven by a combination of reduced in-store activity and discontinuation of certain products at retail. Canada segment's adjusted EBITDA fell 16.6% in the reported quartet to $126 million as incremental cost savings were more than offset by the impact of net sales declines versus the prior year.

Kraft Heinz's Europe segment generated net sales of $543 million in Q1 2017, down 6.8% versus net sales of $583 million in Q1 2016 including a negative 6.6% impact from currency. The segment's pricing decreased 0.6%, primarily reflecting promotional timing in the UK and Italy, while volume/mix gained 0.4% as growth of condiments and sauces in the UK was partially offset by ongoing consumption weakness in Italy and the Netherlands. In the reported quarter, Europe segment's adjusted EBITDA decreased 5.6% on a y-o-y basis to $170 million, including an unfavorable 10.2% impact from currency. Excluding the impact of currency, the segment's adjusted EBITDA grew 4.6% compared to the year ago same quarter as manufacturing savings were partially offset by higher input costs in local currency.

During Q1 2017, Kraft Heinz's Rest of World segment's net sales grew 7.5% to $826 million, compared to sales of $768 million in Q1 2016, despite an unfavorable currency impact of 0.6%. The segment's pricing increased 5.1%, primarily driven by pricing to offset higher input costs in local currency, particularly in Latin America, while volume/mix grew 3.0% driven by favorable holiday-related shipment timing in Indonesia, ongoing growth in China, as well as continued growth in condiments and sauces in Latin America. For the reported quarter, the Company's Rest of World segment's adjusted EBITDA declined 11.8% on a y-o-y basis to $146 million, including an unfavorable 2.7% impact from currency, as organic net sales growth was more than offset by business investments to support growth and higher input costs in local currency.

Dividend

In a separate announcement on May 03, 2017, Kraft Heinz's Board of Directors declared a regular quarterly dividend of $0.60 per share of common stock payable on June 16, 2017, to stockholders of record as of May 19, 2017.

Stock Performance

At the close of trading session on Tuesday, May 16, 2017, Kraft Heinz's stock price marginally fell 0.38% to end the day at $89.11. A total volume of 1.71 million shares were exchanged during the session. The Company's share price has gained 6.65% in the past twelve months and 2.72% on YTD basis. The Company's shares are trading at a PE ratio of 31.71 and have a dividend yield of 2.69%. The stock currently has a market cap of $108.91 billion.

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SOURCE: Active Wall Street