UPDATE 1-Kraft Heinz pauses work related to separation
Kraft Heinz Company KHC | 22.48 | +2.11% |
Adds shares, details from the release
Feb 11 (Reuters) - Kraft Heinz KHC.O said on Wednesday it was pausing work related to its separation and announced a $600 million investment in marketing and sales to return to profitable growth after several quarters of weak sales.
Shares of Kraft Heinz, which first announced plans to split into two companies in September, were down about 5% in premarket 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 dissynergies this year," said Steve Cahillane, the company's new CEO, who took charge in January.
