Sep 26, 2020

Kraft Heinz Q3 2020 Earnings Report

Reported net sales growth across all six Consumer Platforms due to sustained at-home consumption momentum.

Key Takeaways

Kraft Heinz reported a 6.0% increase in net sales and a 6.3% increase in Organic Net Sales for Q3 2020. The company has raised its full-year outlook to mid-single-digit Organic Net Sales growth and high-single-digit Constant Currency Adjusted EBITDA growth.

Q3 net sales increased 6.0%; Organic Net Sales increased 6.3%.

Q3 gross profit increased 20.4%.

Q3 operating income declined 2.8%, net income attributable to common shareholders decreased 33.7%, and diluted EPS decreased 33.8% due to charges related to the pending Cheese Transaction.

Adjusted EBITDA increased 13.5% and Adjusted EPS increased 1.4%.

Total Revenue
$6.44B
Previous year: $6.08B
+6.0%
EPS
$0.7
Previous year: $0.69
+1.4%
Organic Net Sales Growth
6.3%
Gross Profit
$2.34B
Previous year: $1.95B
+20.4%
Cash and Equivalents
$2.72B
Previous year: $2.32B
+17.5%
Free Cash Flow
$2.93B
Previous year: $532M
+450.6%
Total Assets
$98.1B
Previous year: $103B
-4.6%

Kraft Heinz

Kraft Heinz

Kraft Heinz Revenue by Segment

Forward Guidance

The Company believes mid-single-digit Organic Net Sales growth and high-single-digit Constant Currency Adjusted EBITDA growth versus the prior year period are reasonable expectations for fourth-quarter performance. This would result in mid-single-digit Organic Net Sales growth and high-single-digit Constant Currency Adjusted EBITDA growth for the full year.