Kraft Heinz predicts a decline in sales and profits for the year due to a drop in volumes. Despite growth in emerging markets, the company anticipates slowing growth in its reporting division, with a revised organic sales decrease of 3% to 3.5% for the year.

The company’s third-quarter results show a modest improvement in top-line performance, with emerging-market sales growing 3.8% on a reported basis. Kraft Heinz plans to split into two companies by 2026 but expects a decrease in operating income and EPS for the current fiscal year.

Adjusted operating income is forecasted to fall 10% to 12%, and the gross profit margin is expected to decline by about 100 basis points. The company attributes the income decline to inflationary pressures and increased expenses.

Kraft Heinz’s North America market led the decline in volume/mix during the quarter, with a 4.2% decrease. The company aims to strengthen its portfolio through strategic investments in marketing and R&D, confident that the split will drive further efficiencies.

Overall, Kraft Heinz reported a negative 3.5% volume/mix and a 1% pricing increase, resulting in a 2.5% decrease in organic sales for the group. CEO Abrams-Rivera emphasizes the importance of the split in allowing each business to focus resources and improve execution.

Read more at Yahoo Finance: Kraft Heinz bearish on outlook amid volume decreases ahead of split