Kraft Heinz Affirms Full Year Guidance

(RTTNews) - The Kraft Heinz Company (KHC) said it continues to expect 2022 organic net sales growth in the high single digits versus the prior year period and adjusted EBITDA to be in the range of $5.8 billion to $6.0 billion. For the second half of 2022, the company now expects adjusted EBITDA to be split approximately 43% to 57% between the third quarter and the fourth quarter, versus a 45% to 55% split previously expected.

The company noted that its outlook now contemplates inflation for the full year of approximately 20%, up from the previous expectation for inflation to be in the high teens.

The company also outlined additional details on its long-term algorithm, which targets: organic net sales growth of 2% to 3%; adjusted EBITDA growth of 4% to 6%; and adjusted EPS growth of 6% to 8%. The company has updated its long-term net leverage target ratio from consistently below four times to approximately three times.