The end of Covid stockpiling saw Heinz sales fall back in the UK last year, but revenues remained above pre-pandemic levels thanks to a strong ketchup and infant performance.

Sales in the 52 weeks to 25 December 2021 fell back 3.4% to £797.9m, from £825.7m in 2020, according to newly published accounts for HJ Heinz Foods UK at Companies House.

Heinz said the figures represented a “strong” performance, considering its previous year’s figures had been inflated by panic buying in the early period of the Covid-19 pandemic.

Sales remained up 6.3% on the pre-pandemic year of 2019, as at-home consumption levels continued to be elevated.

This more than mitigated a 16% drop in foodservice sales on pre-pandemic levels, as hospitality remained disrupted in periods of 2021.

Heinz said performance was boosted by business wins in tomato ketchup – up 2% year on year and up 27% against 2019 – and a 10% jump in sales across its infant portfolio.

The accounts stated: “The company continues to demonstrate its resilience in the face of economic uncertainty, [which] seems unlikely to change in the short term as the UK continues to negotiates terms after its exit from the EU, with associate risks to consumer confidence and further cost inflation.”

“The company continues to work hard to mitigate the possible impacts of these risks.”

Despite rising input costs, gross margin remained flat at 29.8% as cost of sales and administrative expenses reduced. This enabled pre-tax profits to rise 11% to £146.9m despite the headline sales fall.

Kraft Heinz’ global second quarter accounts said the consumer giant had increased worldwide prices by 12.4% to mitigate rising input costs, while a 2.3% volume decline saw organic net sales rise 10.1%.

In June, The Grocer revealed Heinz and Tesco were in dispute over price increases, leaving the retailer’s shelves stripped of Beanz and Ketchup products.

Two weeks later Tesco and Heinz issued a joint statement, announcing they had “reached an agreement that will see the full range of Heinz products return to Tesco”.

Kraft Heinz did not comment on its UK performance.

Topics