Jun 27, 2020

Kraft Heinz Q2 2020 Earnings Report

Financial results for the second quarter of 2020 reflected solid net sales growth and Organic Net Sales growth, but also included non-cash impairment charges related to goodwill and intangible assets.

Key Takeaways

Kraft Heinz reported a 3.8% increase in net sales and a 7.4% increase in Organic Net Sales compared to the previous year. However, the company also recorded non-cash impairment charges of approximately $1.8 billion in goodwill and $1.1 billion in intangible assets, resulting in a net loss attributable to common shareholders of $1.7 billion.

Net sales increased 3.8 percent versus the year-ago period to $6.6 billion.

Organic Net Sales increased 7.4 percent, driven by increased retail demand.

Adjusted EBITDA in the second quarter increased 12.4 percent versus the year-ago period to $1.8 billion.

Adjusted EPS increased 2.6 percent to $0.80.

Total Revenue
$6.65B
Previous year: $6.41B
+3.8%
EPS
$0.8
Previous year: $0.78
+2.6%
Organic Net Sales Growth
7.4%
Gross Profit
$2.45B
Previous year: $2.08B
+17.8%
Cash and Equivalents
$2.81B
Previous year: $1.45B
+93.7%
Free Cash Flow
$1.96B
Previous year: $822M
+138.2%
Total Assets
$98.3B
Previous year: $103B
-4.7%

Kraft Heinz

Kraft Heinz

Kraft Heinz Revenue by Segment

Forward Guidance

Kraft Heinz did not provide specific forward guidance in this earnings report. However, they mentioned plans to share more details on their initiatives during their Investor Day in September.

Revenue & Expenses

Visualization of income flow from segment revenue to net income