Investing.com -- Shares in Kraft Heinz Co (NASDAQ:KHC) surged in after-hours trading in spite of sliding revenues from severe currency headwinds as the multinational food company continues its integration from last summer's massive merger.
During the company's first quarter of Fiscal Year 2016, Kraft Heinz reported earnings of $896 million or 0.73 per share, above analysts' forecasts of 0.62. Last year, ahead of the merger the company posted earnings of $96 million or 0.24 per share.
Still, Kraft Heinz saw its revenues slump nearly 4% to $6.57 billion on a pro forma basis, due primarily to the negative impacts of foreign exchange translation. In Europe, sales from Kraft Heinz tumbled 11.7% while revenues in the emerging markets fell more than 15.5%. Sales in the U.S. were virtually flat, gaining 0.2%. The figures were based on data assuming that the companies completed the merger in December, 2013. Analysts expected revenues on a pro forma basis of $6.5 billion.
Kraft Heinz CEO Bernardo Hees credited improved net sales performance and significant cost savings from the integration of the two companies for the revenues beat.
"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," Hees said. "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."
Within the report, the company increased Adjusted EBITDA by 32.9% in the U.S. to $1.5 billion, spurred by innovative practices in production of its Lunchables children meals. In the euro zone, Kraft Heinz was able to reduce pricing by 2.9% due to heightened promotional activity with soup and beans products in the U.K.
Shares in Kraft Heinz soared 4.05 or 5.06% to 84.03 in after-hours.