•
Dec 28, 2024
Kraft Heinz Q4 2024 Earnings Report
Key Takeaways
Kraft Heinz reported a 4.1% decline in net sales for Q4 2024, impacted by volume declines across all segments. Adjusted EPS increased by 7.7% to $0.84, while operating income decreased significantly due to a $1.4 billion impairment loss. Despite revenue challenges, the company maintained industry-leading margins and strong free cash flow.
Kraft Heinz
Kraft Heinz
Forward Guidance
Kraft Heinz expects organic net sales for FY 2025 to be flat to down 2.5%, with sequential improvement throughout the year. Adjusted EPS is projected to be between $2.63 and $2.74.
Positive Outlook
- Expected sequential improvement in organic net sales throughout 2025
- Continued pricing power to offset cost inflation
- Efficiency initiatives driving margin expansion
- Stabilizing input costs supporting profitability
- Strong free cash flow conversion expected to remain around 95%
Challenges Ahead
- Projected revenue decline of up to 2.5%
- Higher tax rate creating a $0.23 headwind to EPS
- Lapping lower variable compensation from 2024 presents a challenge
- Foreign currency volatility may impact reported financials
- Ongoing shifts in consumer behavior impacting volume growth