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Jun 29, 2024
Kraft Heinz Q2 2024 Earnings Report
Kraft Heinz's performance was marked by a decrease in net sales and organic net sales, alongside an increase in gross profit margin and adjusted operating income.
Key Takeaways
Kraft Heinz reported a decrease in net sales by 3.6% and organic net sales by 2.4%. However, the company saw an increase in gross profit margin by 180 basis points and adjusted operating income by 2.0%. Diluted EPS decreased significantly, while adjusted EPS saw a slight decrease.
Net sales decreased by 3.6%, with organic net sales down by 2.4%.
Gross profit margin increased by 180 basis points to 35.4%.
Operating income decreased significantly by 62.1%, while adjusted operating income increased by 2.0%.
Diluted EPS was $0.08, a decrease of 90.1%, and adjusted EPS was $0.78, down by 1.3%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For fiscal year 2024, the Company now expects Organic Net Sales to be down 2 percent to flat versus the prior year, Adjusted Operating Income growth of 1 to 3 percent versus the prior year, and Adjusted EPS growth of 1 to 3 percent, or in the range of $3.01 to $3.07.
Positive Outlook
- Continued ramp up of innovation and renovation, particularly in North America Retail.
- Increasing marketing investment to continue to drive brand superiority across our portfolio.
- Expect to increase distribution through our go-to-market strategy and global activations in Away From Home and Emerging Markets.
- Selectively increase investments in promotions, understanding that the consumer is looking for value.
- Expecting Adjusted Gross Profit Margin expansion in the range of 75 to 125 basis points versus the prior year.
Challenges Ahead
- Organic Net Sales to be down 2 percent to flat versus the prior year, compared to the previous expectation of 0 to 2 percent growth.
- Adjusted Operating Income growth of 1 to 3 percent versus the prior year, compared to the previous expectation of 2 to 4 percent growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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