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Kraft Heinz
🇺🇸 NASDAQ:KHC
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•
Sep 30, 2023

Kraft Heinz Q3 2023 Earnings Report

Kraft Heinz's financial performance was marked by net sales growth across Foodservice, Emerging Markets, and U.S. Retail Grow Platforms, along with improved productivity and reinvestment in strategic areas.

Key Takeaways

Kraft Heinz reported a 1.0% increase in net sales and a 1.7% increase in Organic Net Sales. Adjusted EPS was up 14.3% to $0.72. The company reached its target Net Leverage ratio of approximately 3.0x.

Net sales increased by 1.0%, with Organic Net Sales up by 1.7%.

Gross profit margin increased by 568 basis points to 34.0%.

Adjusted EPS increased by 14.3% to $0.72.

The company reached its target Net Leverage ratio of 2.9x.

Total Revenue
$6.57B
Previous year: $6.51B
+1.0%
EPS
$0.72
Previous year: $0.63
+14.3%
Organic Net Sales Growth
1.7%
Previous year: 11.6%
-85.3%
Gross Profit
$2.24B
Previous year: $1.84B
+21.3%
Cash and Equivalents
$1.05B
Previous year: $997M
+5.5%
Free Cash Flow
$1.84B
Previous year: $885M
+108.0%
Total Assets
$89.7B
Previous year: $90B
-0.4%

Kraft Heinz

Kraft Heinz

Forward Guidance

For fiscal year 2023, the Company expects Organic Net Sales growth of approximately 4%, Constant Currency Adjusted EBITDA growth of 7 to 9 percent, and Adjusted EPS to be in the range of $2.91 to $2.99.

Positive Outlook

  • Organic Net Sales growth of 4 to 6 percent versus the prior year, closer to the lower end of the range at approximately 4%.
  • Constant Currency Adjusted EBITDA growth of 5 to 7 percent versus the prior year, or 7 to 9 percent when excluding the impact from lapping a 53rd week in 2022.
  • Adjusted Gross Profit Margin expansion is expected to contribute to Constant Currency Adjusted EBITDA growth.
  • Adjusted Gross Profit Margin expansion of 200 to 250 basis points versus the prior year.
  • Effective tax rate on Adjusted EPS to be in the range of 19 to 20 percent.

Challenges Ahead

  • Includes a negative impact of approximately $0.03 from expected unfavorable changes in non-cash pension and post-retirement benefits
  • Includes a currency headwind of approximately $0.04 at current foreign exchange rates.
  • Expected 2023 year-over-year Adjusted EPS change reflects a negative $0.06 impact from lapping a 53rd week in 2022.
  • Mid-single-digit inflation for the full year
  • The Company expects Organic Net Sales growth of 4 to 6 percent versus the prior year, closer to the lower end of the range at approximately 4%.

Company Overview

Full financial data and analysis

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