Kraft Heinz lowers its 2024 sales forecast
Kraft Heinz, one of the largest food companies, has cut its sales forecast for 2024 as higher prices put more pressure on consumer demand. As a result of the significant price increases of the past two years, demand has decreased in the North American and European markets, especially among consumers with lower incomes.
According to the company’s announcement on Wednesday, they also moderated their organic sales forecasts for the rest of the year. Such changes indicate that rising prices are affecting consumer demand, particularly in key markets. In addition to Kraft Heinz, other large food companies such as Conagra and General Mills are facing similar challenges.
During the second quarter, Kraft Heinz’s total volume fell 3.4 percentage points, while prices rose 1.0 percentage points. In comparison, in the same period of the previous year, they experienced a 7 percentage point decrease in volume and an 11 percentage point increase in price. This data confirms that although prices have risen, demand has fallen.
Kraft Heinz now expects organic net sales to stagnate or even decline by 2% in 2024. Organic net sales represent revenues adjusted for inflation, thus giving a more accurate picture of the company’s real performance. This suggests that while sales may increase in nominal terms, no increase in real terms is expected due to inflation.
Related news
Kraft Heinz may split into two
Kraft Heinz, one of the world’s most well-known food companies,…
Read more >Kraft Heinz seeking to reshape portfolio
The Kraft Heinz Co. is considering reshaping its product portfolio.…
Read more >Kraft Heinz To Invest $3bln In Upgrading US Manufacturing
Kraft Heinz is spending $3 billion to upgrade its US…
Read more >Related news
The GKI business climate index decreased slightly in July
According to a survey by GKI Economic Research Ltd. –…
Read more >We are using up the Earth’s resources today, and there is something deeply embedded in this that we don’t even think about.
This year, July 24th is global Overshoot Day, or Overconsumption…
Read more >The price of bread is rising unstoppably – and with it everything from the bakery
Bread is a staple on the table of Hungarian families,…
Read more >