Dec 25, 2021

Kraft Heinz Q4 2021 Earnings Report

Strategic transformation powered another year of outstanding performance, strengthened balance sheet, and strong free cash flow generation underscored advancing credit quality.

Key Takeaways

Kraft Heinz reported a decrease in net sales by 3.3 percent to $6.7 billion, but organic net sales increased by 3.9 percent. Net income decreased to a loss of $255 million, primarily driven by non-cash impairment losses. Adjusted EBITDA decreased to $1.6 billion. The company expects to deliver strong financial performance in 2022.

Net sales decreased 3.3 percent versus the year-ago period to $6.7 billion.

Organic Net Sales increased 3.9 percent versus the prior year period and 9.4 percent versus the comparable 2019 period.

Net income/(loss) decreased to a loss of $255 million primarily driven by non-cash impairment losses of $1.3 billion.

Adjusted EPS decreased to $0.79, down 1.3 percent versus the prior year.

Total Revenue
$6.71B
Previous year: $6.94B
-3.3%
EPS
$0.79
Previous year: $0.8
-1.3%
Organic Net Sales Growth
3.9%
Previous year: 6%
-35.0%
Gross Profit
$2.16B
Previous year: $2.52B
-14.3%
Cash and Equivalents
$3.45B
Previous year: $3.42B
+0.8%
Free Cash Flow
$4.46B
Previous year: $4.33B
+2.9%
Total Assets
$93.4B
Previous year: $99.8B
-6.4%

Kraft Heinz

Kraft Heinz

Kraft Heinz Revenue by Segment

Forward Guidance

The Company expects to deliver strong financial performance in 2022. The Company currently expects a low-single-digit percentage increase in 2022 Organic Net Sales versus the prior year period, reflecting continued stronger consumption versus pre-pandemic levels. Adjusted EBITDA is expected to be in the range of $5.8 billion to $6.0 billion.

Positive Outlook

  • Continued stronger consumption versus pre-pandemic levels.
  • Strong Organic Net Sales.
  • Ongoing efforts to manage inflationary pressures.
  • Continued investment in long-term growth.

Revenue & Expenses

Visualization of income flow from segment revenue to net income