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.

Total Revenue

$6.58B

Previous year: $6.86B

-4.1%

EPS

$0.84

Previous year: $0.78

+7.7%

Organic Net Sales Growth

-3.1%

Gross Profit

$2.25B

Previous year: $2.38B

-5.7%

Cash and Equivalents

$1.33B

Previous year: $1.4B

-4.7%

Free Cash Flow

$1.14B

Previous year: $1.12B

+1.7%

Total Assets

$88.3B

Previous year: $90.3B

-2.3%

Kraft Heinz Revenue

Kraft Heinz EPS

Kraft Heinz Revenue by Segment

Kraft Heinz Revenue by Geographic Location

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

Revenue & Expenses

Visualization of income flow from segment revenue to net income