[ACCESSWIRE]
Upcoming AWS Coverage on WhiteWave Foods Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 11, 2016 / Active Wall St. announces its post-earnings coverage on The Kraft Heinz Co. (NASDAQ: KHC). The company posted its financial results for the third quarter fiscal 2016 (Q3 FY16) on November 03, 2016. The Chicago and Pittsburgh headquartered company's GAAP net sales increased 2.4% y-o-y and adjusted EPS surged 88.6% y-o-y. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Kraft Heinz's competitors within the Food - Major Diversified space, The WhiteWave Foods Co. (NYSE: WWAV), filed its Form 10-Q for the quarter ended September 30, 2016 with the Securities and Exchange Commission on November 9, 2016. AWS will be initiating a research report on WhiteWave Foods in the coming days.
Today, AWS is promoting its earnings coverage on KHC; touching on WWAV. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=KHC
http://www.activewallst.com/registration-3/?symbol=WWAV
Earnings Reviewed
In the reported quarter, Kraft Heinz's GAAP net sales came in at $6.27 billion which was above $6.12 billion recorded at the end of Q3 FY15. However, GAAP net sales numbers for the reported quarter missed market expectations of $6.31 billion. Furthermore, pro-forma sales were down 1.5% y-o-y to $6.27 billion in Q3 FY16 from $6.36 billion in Q3 FY15, due to 0.5% headwinds in foreign currency translation and 1% decline in organic sales, because of lower volume/mix and pricing.
The processed food company reported GAAP net income of $842 million, or $0.69 per diluted share, for Q3 FY16 compared to GAAP net loss of $303 million, or $0.27 loss per diluted share, in Q3 FY15. The company's non-GAAP EPS surged to $0.83 per diluted share in Q3 FY16 from $0.44 per diluted share in the year ago quarter. Additionally, non-GAAP EPS numbers beat market earnings estimates of $0.76 per diluted share.
The company's Q3 FY16 financial results reflects the significant gains from cost savings and the redemption of preferred stock, as well as lower taxes compared to that in the prior year's period.
Operating Metrics
In Q3 FY16, the company's gross profit increased to $2.22 billion from $1.63 billion in the prior year's quarter. Kraft Heinz's Q3 FY16 GAAP operating income rallied 254.1% y-o-y to $1.41 billion. Adjusted EBITDA improved to $1.80 billion in Q3 FY16 from $1.48 billion in the year reported period.
Segment Performance
During Q3 FY16, the company's United States pro-forma net sales were down 1.2% y-o-y to $4.40 billion, due to a decline in organic sales during the year. However, the segment's adjusted EBITDA grew 30.6% y-o-y to $1.35 billion due to gains from cost savings' initiatives and favorable pricing net of key commodity costs, which was partially offset by lower volume/mix.
Kraft Heinz's Canada's net sales and organic net sales came in at $550 million, up 2.0% y-o-y from $539 million recorded in the year ago quarter. The segment's adjusted EBITDA also grew 34.5% y-o-y to $148 million due to a 1.8% favorable impact from currency and gains were driven by cost savings' initiatives and volume/mix growth.
Europe's net sales fell 14.5% y-o-y to $513 million in Q3 FY16 as sales numbers were impacted by a 6.7% unfavorable currency translation, 7.8% decline in organic sales, pricing headwinds of 2.9% and a 4.9% fall in volume/mix. The segment adjusted EBITDA also decline 17.9% y-o-y in Q3 FY16 to $183 million.
In Q3 FY16, the Rest of World's net sales were $809 million, up 4.4% from $775 million recorded in the past year comparable quarter. The increase in segment sales was due to 0.8% favorable currency translation, 3.6% growth in organic sales, 1.9% rise in product pricing, and 1.7% growth in volume/mix. However, adjusted EBITDA was down 1.3% y-o-y to $150 million due to higher input cost and investments behind new product initiatives.
Cash & Balance Sheet
The company had cash and cash equivalents balance of $3.92 billion as on October 02, 2016, compared to $4.84 billion, at the close of books on January 03, 2016. Furthermore, the company ended the quarter with total long-term debt of $29.98 billion compared to $25.15 billion as on January 03, 2016.
Dividend
In a separate press release on November 03, 2016, Kraft Heinz's Board of Directors declared a regular quarterly cash dividend of $0.60 per common share. The dividend is payable on December 16, 2016, to all shareowners of record as of December 02, 2016.
Stock Performance
At the closing bell, on Thursday, November 10, 2016, Kraft Heinz's stock fell by 4.14%, ending the trading session at $81.42. A total volume of 7.42 million shares were traded at the end of the day, which was higher than the 3-month average volume of 2.44 million shares. In the last twelve months, shares of the company have advanced 17.19%. Moreover, the stock gained 14.28% since the start of the year. The stock is trading at a PE ratio of 60.49 and has a dividend yield of 2.95%.
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SOURCE: Active Wall Street
