Kraft Heinz (NASDAQ:KHC) posted second-quarter results on Thursday that showed a continuing lift from consumer spending changes brought on by the pandemic.
Organic sales rose 7.4% for the period, which runs from late March through late June, thanks to higher demand for at-home meal and snacking products. That uptick represents an acceleration over the 6.2% boost the consumer-packaged foods giant announced in late April.
Kraft Heinz booked several major non-cash impairment charges, but its finances looked strong after stripping out those impacts. The company achieved balanced organic growth that included higher prices and increased sales volumes. Adjusted earnings rose 3% to $0.80 per share. "We are now starting to realize the benefits of agility and scale," CEO Miguel Patricio said in a press release.
Without issuing a concrete forecast, executives said they are "cautiously optimistic" that the positive sales momentum will carry through to the second half of 2020. Kraft Heinz also predicted stronger cash flow and modestly improving profit margins.
The company is encouraged by the fact that many of its newest customers are younger, have higher incomes, and are in households without young children. These changes are an opportunity to extend many of its brands into new, attractive demographics.