Kraft Heinz Q3 2024 Earnings Report
Key Takeaways
Kraft Heinz reported a decrease in net sales by 2.8% and a significant decrease in operating income due to non-cash impairment losses. However, adjusted EPS increased by 4.2%. The company is narrowing its full-year outlook for organic net sales, adjusted operating income, and adjusted EPS.
Net sales decreased by 2.8%, with organic net sales down by 2.2%.
Operating income decreased significantly due to non-cash impairment losses of $1.4 billion.
Adjusted EPS increased by 4.2% to $0.75.
The company is narrowing full year outlook for organic net sales, Adjusted Operating Income and Adjusted EPS.
Kraft Heinz
Kraft Heinz
Kraft Heinz Revenue by Segment
Kraft Heinz Revenue by Geographic Location
Forward Guidance
For fiscal year 2024, the Company now expects Organic Net Sales to be at the low end of the previous guidance range of down 2 percent to flat versus the prior year, Adjusted Operating Income growth to be at the low end of the previous guidance range of 1 to 3 percent versus the prior year and Adjusted EPS growth to be at the low end of the previous guidance range of 1 to 3 percent, or in the range of $3.01 to $3.07.
Positive Outlook
- Efficiency initiatives are expected to benefit the Adjusted Operating Income.
- The company expects an effective tax rate on Adjusted EPS to be approximately 21 percent.
- The company expects interest expense and other expense/(income) to be relatively flat versus the prior year.
- Continued momentum in Global Away From Home and Emerging Markets.
- Proven ability to sustainably unlock efficiencies and generate strong cash flow.
Challenges Ahead
- Organic Net Sales to be at the low end of the previous guidance range of down 2 percent to flat versus the prior year.
- Adjusted Operating Income growth to be at the low end of the previous guidance range of 1 to 3 percent versus the prior year.
- Adjusted EPS growth to be at the low end of the previous guidance range of 1 to 3 percent, or in the range of $3.01 to $3.07.
- U.S. Retail business is expected to have a more elongated recovery, driven by specific categories that continue to experience pressure.
- Guidance does not reflect any impact from future potential share repurchases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income