USA, Pittsburgh. Shares of Kraft Heinz Co. jumped 11% on 31 October as the company reported a higher-than-expected profit in the third quarter.
For the third quarter ended 28 September, 2019, the company reported net income of $899 mill., or $0.74 diluted earnings per share, compared with $619 mill., or $0.50 diluted earnings per share, in the third quarter ended 29 September, 2018.
The results reflected a gain on the sale of the company’s Canadian natural cheese business and a non-cash impairment charge in the prior year period that was partially offset by debt extinguishment costs associated with the tender offers.
Excluding the sale of the cheese business and other items, Kraft Heinz reported $0.69 adjusted earnings per share in the third quarter of 2019, compared with adjusted EPS of $0.76 in third quarter ended 29 September, 2018.
Sales for the most-recent quarter slid 4.8% to $6,076 mill. driven by a negative 2.0% point impact from divestitures and an unfavorable 1.7% point impact from currency, the company said.
“While our third-quarter results remain below our potential, we showed sequential improvement versus the first half, and I believe we are beginning to operate the business better,” said Miguel Patricio, CEO of Kraft Heinz. “We are making good progress in identifying and addressing the root causes of past performance, as well as setting our strategic direction. Although there is still much work ahead, we’re encouraged by our improving performance, and are even more confident in our ability to turn around the Company and set a path of long-term growth and profitability.”
For the nine months ended 28 September, 2019, net income was $1,753 mill., or $1.43 per diluted share, compared with $2,376 mill., or $1.94 per diluted share in the third quarter ended 29 September, 2018.
Net sales for the nine-month period were $18,441 mill., compared with $19,377 mill. reported in the year-ago period.