PITTSBURGH — Kraft Heinz Co. said its third-quarter net income jumped 45% to $899 million as it completed the sale of its Canadian natural cheese business.
The Pittsburgh-based company announced the sale last year and closed it in July. It sold the business — including the Cracker Barrel cheese brand in Canada —to Parmalat for approximately $1.24 billion. Kraft will continue to make and sell other cheese products in Canada, including Cheez Whiz.
Kraft Heinz said its net income amounted to 74 cents per share. Adjusted for non-recurring gains, Kraft Heinz earned 69 cents per share.
That exceeded Wall Street’s expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 53 cents per share.
But Kraft Heinz said revenue fell 5% as price increases in the U.S. and Europe failed to make up for lower sales.
The maker of Oscar Mayer meats, Jell-O pudding and Velveeta cheese posted revenue of $6.08 billion in the third quarter. Three analysts surveyed by Zacks expected $6.1 billion.
Kraft Heinz shares rose 7% to $30.50 in premarket trading. They have fallen 34% since the beginning of the year.
The Associated Press