Benzinga | Oct 27, 2021 03:08PM EDT

Kraft Heinz Q3 Earnings Top Estimates, Notes Margin Pressure

* Kraft Heinz Co (NASDAQ:KHC) reported a third-quarter FY21 sales decline of 1.8% year-on-year, to $6.32 billion, beating the analyst consensus of $6.02 billion.

* Sales in the U.S. fell 4% Y/Y, International rose 4.4%, and Canada increased 3.4%.

* The gross profit decreased by 13.5% Y/Y to $2.03 billion, with the margin contracting 430 points to 32%.

* The operating margin was 18.3%, and operating income for the quarter rose 0.8% to $1.2 billion.

* Adjusted EBITDA fell 11.3% to $1.5 billion.

* EPS of $0.65 beat the analyst consensus of $0.57.

* Kraft Heinz held $2.3 billion in cash and equivalents as of September 25, 2021. Net cash provided by operating activities year-to-date declined 26.4% Y/Y to $2.4 billion.

* Kraft Heinz's board declared a regular quarterly dividend of $0.40 per share, payable on December 17, 2021, to stockholders of record as of November 26, 2021.

* Outlook: Kraft Heinz expects Organic net sales growth in 2021 to be flat.

* It raised FY21 adjusted EBITDA guidance from at least $6.1 billion to more than $6.2 billion.

* Price Action: KHC shares are trading higher by 0.07% at $36.47 on the last check Wednesday.