Kraft Heinz raises 2022 inflation forecast to 20%

Shares of Kraft Heinz Co.
KHC,
+0.32%
fell 0.5% in premarket trading Wednesday, after the consumer good and beverage brands company affirmed its full-year revenue outlook, while increasing its inflation forecast. The company still expects year-over-year 2022 organic net sales to grow in the high-single digits” percentage range. The company now expects 2022 inflation of about 20%, compared with a previous estimate for inflation in the “high teens” percentage range. Separately, the company lowered its long-term debt leverage target to about 3X from “consistently below” 4X. “With interest rates 100% fixed with a weighted average maturity of 14.5 years, and leverage meaningfully improved, the company believes this level will provide Kraft Heinz with a strong balance sheet through cycles and sufficient financial flexibility,” the company said in a statement. Kraft Heinz’s stock has gained 0.9% over the past three months through Tuesday, while the SPDR Consumer Staples Select Sector ETF
XLP,
-0.57%
has slipped 2.8% and the S&P 500
SPX,
-0.41%
has lost 6.1%.