U.S. consumers have flocked to established brands as they stock up pantries during the pandemic.
The Pittsburgh company posted a net loss of $1.65 billion, or $1.35 a share, for the quarter, swinging from a profit of $449 million, or 37 cents, in the year-earlier quarter.
On an adjusted basis, the company reported profit of 80 cents a share for the latest quarter, beating analysts’ average forecast of 65 cents, according to a FactSet survey.
Revenue for Kraft Heinz totaled $6.65 billion in the latest quarter, up 4% from $6.41 billion. Analysts in the FactSet survey predicted sales of $6.55 billion.
Kraft Heinz shares recently traded at $33.62, down 5.45%. They rose 11% year to date through Wednesday. The stock has bounced off its 52-week low of just under $20 in mid-March.
"We are now starting to realize the benefits of agility and scale, while implementing changes across the company to further drive agility, both internally and how we go to market,” Chief Executive Miguel Patricio said in a statement.
Thanks to the coronavirus epidemic, the latest results reflect $2.9 billion of non-cash impairment charges.
That includes $626 million for Oscar Mayer, which specializes in cold cuts, $140 million for Maxwell House coffee and $290 million for seven other brands.
Impairments totaled $815 million for retail in Canada and $655 million for Kraft’s U.S. food service operation.