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Dec 31, 2022
Kraft Heinz Q4 2022 Earnings Report
Kraft Heinz reported strong results, ending Q4 with solid momentum.
Key Takeaways
Kraft Heinz reported a strong fourth quarter and full year 2022, with net sales increasing by 10.0% and organic net sales growth of 10.4%. Net income increased significantly, driven by non-cash impairment losses in the prior year period and lower interest expense. The company provided a full year 2023 outlook for organic net sales, adjusted EBITDA, and adjusted EPS.
Net sales increased 10.0%, with Organic Net Sales growth of 10.4%.
Net income increased 447.9%.
Adjusted EBITDA increased 8.6%.
Diluted EPS was $0.72, up 442.9%. Adjusted EPS was $0.85, up 7.6%.
Kraft Heinz
Kraft Heinz
Kraft Heinz Revenue by Segment
Kraft Heinz Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.com Forward Guidance
The Company expects 2023 Organic Net Sales growth of 4 to 6 percent versus 2022. Constant Currency Adjusted EBITDA growth from 2022 to 2023 is expected to range between 2 to 4 percent, or 4 to 6 percent when excluding the impact from the 53rd week in 2022. Adjusted EPS is expected to be $2.67 to $2.75.
Positive Outlook
- Organic Net Sales growth of 4 to 6 percent versus 2022.
- Constant Currency Adjusted EBITDA growth from 2022 to 2023 is expected to range between 2 to 4 percent, or 4 to 6 percent when excluding the impact from the 53rd week in 2022.
- Anticipates high single-digit inflation for the year, with pricing and gross efficiencies contributing to Adjusted Gross Profit Margin recovery.
- Adjusted Gross Profit Margin expansion is expected to fund incremental investments across technology, marketing, and people.
- Adjusted EPS is expected to be $2.67 to $2.75.
Challenges Ahead
- Includes approximately a $0.04 negative impact from expected unfavorable changes in non-cash pension and post-retirement benefits.
- A $0.04 currency headwind at current foreign exchange rates.
- The expected 2023 year-over-year Adjusted EPS performance reflects a negative $0.06 impact from lapping the 53rd week in 2022.