(Reuters) -Kraft Heinz posted better-than-expected net sales and profit for the second quarter on Wednesday, helped by resilient demand for its pantry staples and condiments in the United States as consumers tried to stretch their household budgets.
A mix of sticky inflation and heightened economic uncertainty has forced people to cook more affordable meals at home instead of eating out, helping demand for some of Kraft Heinz's products.
The company also reiterated it was evaluating strategic transactions
for some brands. It was exploring a spin-off of the grocery business according to media reports earlier this month.
While Kraft Heinz's quarterly volumes fell about 2.7 percentage points due to some weakness in categories such as coffee, cold meat cuts and ready-to-eat meals, the decline was lower than the prior quarter's drop of 5.6 percentage points.
In North America, its biggest market by revenue, volumes fell 3.4 percentage points, following a drop of 7.1 percentage points in the first quarter.
Prices increased 0.7 percentage points in the quarter as the Jello maker tried to offset higher costs of commodities such as coffee and meats.
The Philadelphia Cream Cheese maker has worked on introducing healthier options in some categories such as desserts to capture consumer demand for healthier meals, and has said it would remove food dyes from its portfolio.
Its shares rose about 1% in premarket trading after the company reiterated its annual sales and profit targets. Kraft Heinz's stock has fallen about 7% so far this year.
Net sales for the three months ended June 28 fell 1.9% to $6.35 billion, compared with analysts' average estimate of a 3.35% fall to $6.26 billion, according to data compiled by LSEG.
Excluding items, the company reported earnings per share of 69 cents, compared with estimates of 64 cents.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Devika Syamnath)
