The Kraft Heinz Company’s first quarter results for 2016 show a net sales increase of 165 per cent due to the merger of Kraft and Heinz. Operating income also saw an increase of 197 per cent.

However, net sales were down 3.8 per cent to $6.6 billion, compared to pro forma net sales for the year-ago period, due to a -4.5 per cent impact from currency and a -0.4 per cent impact from divestitures. Organic net sales increased 1.1 per cent compared to the year-ago period.

Adjusted EBITDA increased 21.3 per cent versus the same period a year ago to $2bn, despite a -6 per cent impact from currency, which the company claims came from cost savings initiatives and a favourable pricing net of commodity costs. Adjusted EPS increased 37.7 per cent in comparison to the same period in 2015 to $0.73, which Kraft Heinz says reflects the growth in adjusted EBITDA.

“We’ve had a solid start to the year. Our savings are coming in faster than anticipated and we’re performing better where it matters most, with our customers and consumers in the marketplace,” said chief executive Bernardo Hees. “But we still have a lot of work ahead. Consumption trends in a number of our core categories remain challenging and we’re entering a critical phase in our North American supply chain integration. As we implement our plans, we will keep our focus on profitable growth while continuing to put our consumers first.”

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