KHC Kraft Heinz Company

   By Micah Maidenberg 
 

Kraft Heinz Co. said Monday consumer demand for its products has been strong as the coronavirus pandemic inspires consumers to rush to grocery stores and cook more from home.

But the company said higher sales won't necessarily mean better profits.

The maker of Kraft cheeses, Oscar Mayer cold cuts, Heinz ketchup and other food products said net sales are expected to rise 3% in the first quarter, or 6% on a comparable basis, stripping out currency movements and the effect of asset sales.

Kraft Heinz said it doesn't expect the higher sales to mean stronger net income from continuing operations or a narrower loss on that metric, or stronger adjusted earnings or earnings per share in part because of the added expense related to meeting higher consumer demand.

The company is postponing an in-person investor day scheduled for May.

Kraft Heinz has struggled to boost sales for many of its products and last year hired a new chief executive, Miguel Patricio.

Like other food producers, Kraft Heinz said it has seen a decline in its business serving restaurants, many of which are closed or operating at limited capacity due to the pandemic.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

April 06, 2020 16:51 ET (20:51 GMT)

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