Kraft Heinz said it was pausing work on its planned separation after reporting a dip in fourth-quarter revenue and a near 70% slump in net profit.
Kraft Heinz (KHC) announced on Wednesday that it was pausing work on its planned separation after reporting a dip in fourth-quarter revenue and a near 70% slump in net profit.
KHC shares fell 7% in pre-market trading.
“My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation, and we will no longer incur related dis-synergies this year,” said Steve Cahillane, CEO of Kraft Heinz.
Meanwhile, Q4 net sales was 3.4% lower at $6.35 billion, while earnings of $0.55 per share came in below Wall Street’s estimates of $0.61 per share, according to Fiscal.ai data.
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