PITTSBURGH — In an update to investors, Kraft Heinz Co. management said it expects the company’s net sales to rise 3% and organic net sales to rise 6% during the first quarter of fiscal 2020 due to the coronavirus (COVID-19) outbreak and increased demand at retail. But despite the sales bump, Kraft Heinz does not expect it to flow through to its net income from continuing operations.
Items affecting quarterly earnings include additional expenses to meet the accelerated growth, declines in foodservice sales, supply chain cost inflation and unfavorable currency translation. The company is scheduled to release its first-quarter earnings on April 30.
Kraft Heinz also has postponed its investor day scheduled for May until the second half of 2020. The investor day is when Miguel Patricio, chief executive officer, and his management team are expected to unveil their new strategy to grow the company.
“We have been developing a powerful new strategy, transforming our capabilities and making needed investments in the business for months,” Mr. Patricio said. “Our strong execution in the face of this crisis reflects the exceptional progress our people have been making.
“We have also been looking forward to sharing our new vision and long-term growth framework in-person with investors and all our external stakeholders. But given the current, unprecedented COVID-19 challenge, we believe it is better for Kraft Heinz, our shareholders and our customers that we continue our single-minded focus on getting our products from our plants to stores and onto consumers’ tables.”