The maker of Velveeta is sinking on a drop in sales
Although the maker of Velveeta, Heinz Ketchup, and Mac and Cheese reported adjusted profit that beat analysts expectations, the company experienced a drop in sales due to a stronger dollar and lower US demand.
Lower costs helped boost earnings, which came in at an adjusted $0.91 per share, ahead of the $0.87 that analysts were expecting, according to the Bloomberg consensus.
US sales fell 3.1% to $4.84 billion, accounting for more than 70 percent of total sales.
Last month, the company announced they would form a joint venture with media mogul Oprah Winfrey to develop a new line of food products in the United States with profits donated to charities focusing on eradicating hunger.
RELATED: 7 most valuable companies in the world
See also: The US dollar is becoming a problem
- Goldman Sachs climbs to a record high
- A 7-year-old girl asked Google for a job and got a personal response from CEO Sundar Pichai
- Here's a giant image of Putin caressing a pregnant Trump projected on a New York Apple store