Kraft Heinz Earnings: Even Amid Strains, Sales and Profits Climb on Price Hikes; Shares Attractive

Kraft Heinz adeptly withstood commodity, transportation, and logistics inflation as well as lingering supply chain angst, as evidenced by solid first-quarter marks that sent shares up at a mid-single-digit percentage clip. Organic sales popped 9.4%, while adjusted gross and operating margins expanded 130 and 90 basis points, respectively, to 32.8% and 19.5%. Higher prices at the shelf were once again a major contributor, serving as a nearly 15% benefit to the top line, as volumes retreated 5.3% (still modest relative to the level of price hikes passed through).