Michael M. Santiago/Getty Images News
Kraft Heinz (NASDAQ:KHC) reaffirmed prior guidance ahead of an appearance on Wednesday by execs at the Barclays Global Consumer Staples Conference.
For the long-term, Kraft sees organic sales growth of 2% to 3%, adjusted EBITDA growth of 4% to 6%, and adjusted EPS growth of 6% to 8%.
For FY22, Kraft Heinz (KHC) continues to expect organic sales growth in the high single digits and adjusted EBITDA to be in the range of $5.8B to $6.0B vs. $5.92B consensus.
On the capital allocation front, the food company updated its long-term net leverage target ratio from consistently below 4X to approximately 3X. With interest rates 100% fixed with a weighted average maturity of 14.5 years, and leverage meaningfully improved, KHC believes this level will provide it with a strong balance sheet through cycles and sufficient financial flexibility. The KHC outlook now contemplates inflation for the full year of approximately 20%, up from the previous expectation for inflation to be in the high teens.
Shares of KHC fell 0.48% premarket to $37.35.