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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%.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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