Kraft Heinz raises FY23 EPS view to $2.83-$2.91, consensus $2.72

The Company reaffirms its expectation of 2023 Organic Net Sales growth of 4 to 6% versus 2022. The Company is raising 2023 Constant Currency Adjusted EBITDA guidance to growth of 4 to 6%t versus 2022, or 6 to 8% when excluding the impact from lapping the 53rd week in 2022. The Company continues to anticipate high single-digit inflation for the year, reflecting low double-digit inflation in the first half of the year and mid-single-digit inflation in the second half of the year, with pricing and gross efficiencies continuing to contribute to Adjusted Gross Profit Margin( recovery. 2023 Adjusted Gross Profit Margin is now expected to expand 125 to 175 basis points versus prior year. This expansion is expected to fund incremental investments across marketing, research and development, and technology. The Company is raising 2023 Adjusted EPS guidance to be in the range of $2.83 to $2.91, which includes a negative impact of approximately $0.04 from expected unfavorable changes in non-cash pension and post-retirement benefits and a currency headwind of approximately $0.02 at current foreign exchange rates. The expected 2023 year-over-year Adjusted EPS reflects a negative 6c impact from lapping a 53rd week in 2022. Additionally, the Company now expects an effective tax rate on Adjusted EPS to be in the range of 19 to 21%.