(Reuters) -Kraft Heinz on Tuesday slashed its full-year organic sales and profit forecasts, as demand for its snacks and ready-to-eat meal kits take a hit from higher prices and an uncertain economic backdrop.
Major packaged food firms such as Kraft Heinz, Conagra and General Mills have seen lackluster sales in the United States over the past year as volumes remained muted despite selective price reductions and higher promotions.
PepsiCo last week cut its annual profit forecast, warning of higher production costs and subdued consumer spending due to uncertainty fueled by U.S. President Donald Trump’s expansive tariffs.
Kraft Heinz now expects fiscal year 2025 organic net sales to decline between 1.5% and 3.5%, from its prior forecast of flat to down 2.5%.
The Heinz ketchup maker projected adjusted earnings per share of $2.51 to $2.67, from a prior range of $2.63 to $2.74.
“We’re closely monitoring the potential impacts from macro-economic pressures such as tariffs and inflation,” Kraft Heinz CEO Carlos Abrams-Rivera said.
Shares of the company fell about 1% before the bell.
(Reporting by Savyata Mishra in Bengaluru; Editing by Devika Syamnath)
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