Kraft +2% after at-home consumption propels sales

$The Kraft Heinz (KHC.US)$ reports organic growth jumped 6.2% in Q1 to edge past the consensus mark of +6.1%. Growth in at-home consumption during the quarter more than offset an unfavorable impact from retail inventory reductions and lower foodservice shipments. Pricing was up 1.6% during the quarter and volume/mix contributed 4.6% percentage points of growth. Comparable sales were up 6.4% in the U.S., 2.2% in Canada and 6.9% in international markets. The company generated adjusted EBITDA of $1.42B vs. $1.43B a year ago and $1.36B consensus.

CEO update: "The impact of the health conditions on the company's full-year 2020 results remains uncertain. In each of the company's reporting segments, the company's Q2 2020 outlook reflects, to varying degrees, incremental demand from retail customers due to an increase in at-home consumption, particularly in developed markets, as well as reduced demand in foodservice channels on a global basis. Currently, the company believes low to mid-single-digit Organic Net Sales growth and mid-single-digit constant-currency Adjusted EBITDA growth versus the prior year period is a reasonable expectation for Q2 performance."