Kraft Heinz beats on earnings as costs sink

Kraft Heinz Co, the maker of Velveeta cheese, Heinz ketchup and Oscar Mayer meats, reported a higher-than-expected adjusted profit, helped by lower costs.The company's shares, which had risen 26 percent in the past year to touch a record high on Wednesday, were down about 1 percent at $90.35 in extended trading.The world's fifth-largest food and beverage company has been forced to adjust its products as shoppers prefer fresher items and those perceived to be healthier over packaged foods.Last month, the company said it would form a joint venture with media mogul Oprah Winfrey to develop a new line of food products in the United States.Sales fell 3.8 percent to $6.86 billion, hit by a stronger dollar and lower demand in the United States, but topped the average analyst estimate of $6.74 billion.U.S. sales fell 3.1 percent to $4.84 billion, accounting for more than 70 percent of total sales.Selling, general and administrative expenses fell 21 percent to $879 million in the fourth quarter ended Dec. 31.Net income attributable to Kraft Heinz rose to $944 million in the quarter from $645 million a year earlier.Excluding certain items, the company earned 91 cents per share.Analysts on average had expected a profit of 88 cents per share and revenue of $6.74 billion, according to Thomson Reuters I/B/E/S. (Reporting by Jessica Kuruthukulangara and Anya George Tharakan in Bengaluru; Editing by Saumyadeb Chakrabarty)SEE ALSO:Retail sales destroy expectations as gasoline sales soarJoin the conversation about this storyNOW WATCH: Animated map shows the best and worst states to raise your family
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