Kraft Heinz lowers its 2024 sales forecast

By: Trademagazin Date: 2024. 08. 01. 11:15

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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.

Egyedi cimkés Heinz ketcupok

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.