The Kraft Heinz Company (KHC) on Q1 2022 Results - Earnings Call Transcript
Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Kraft Heinz Company Frst Quarter Results Question-and-Answer Session. I'd now like to turn the call over to your host, Chris Jakubik. You may begin. Chris Jakubik: Thank you, and hello, everyone. This is Chris Jakubik, Head of Global Investor Relations at the Kraft Heinz Company, and welcome to our Q&A session for our first quarter 2022 business update. During our remarks today, we will make some forward-looking statements that are based on how we see things today. Actual results may differ due to risks and uncertainties, and they are discussed in our earnings release and our filings with the SEC. We will also discuss some non-GAAP financial measures today during the call, and these non-GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. And you can find the GAAP to non-GAAP reconciliations within our earnings release and the supplemental materials posted at ir.kraftheinzcompany.com. Before we begin, I'm going to hand it over to our CEO, Miguel Patricio, for a few quick opening comments. Miguel Patricio: Well, thank you, Chris. I would just like to start by sharing how proud I am of our people, and the truly transformational work they continue to deliver for our company. We've seen 2 years of a lot of disruption, and they continue to successfully address the short-term challenges, at the same time that we are building the long-term advantage of our company and our brands. Our teams delivered a strong start for the year, both on top line and bottom line. We remain on strategy with the strongest growth coming from our priority platforms, brands, channels and markets. We are effectively managing our inflation, improving our supply constraints, while continuing to gain incremental efficiencies. We continue to make progress, building and deploying initiatives to accelerate our advantages in areas like becoming more agile, becoming much more creative in marketing, developing joint business plans between retail and foodservice and capacity unlocks in our Grow and Energize platforms. As you are now seeing, we are doing this through strategic partnerships with technology clients and cutting-edge innovators to accelerate our transformation and redefine best-in-class across our value chain. It is a very exciting time for Kraft Heinz and I don't think we could be better equipped to build on our momentum through what promises to remain a very challenging environment. With that, well, let's take your questions. Operator: [Operator Instructions] Our first question comes from Andrew Lazar with Barclays. Operator: Our next question comes from David Palmer with Evercore ISI. Operator: Our next question comes from Bryan Spillane with Bank of America. Operator: Our next question comes from Jason English with Goldman Sachs. Operator: Our next question comes from Ken Goldman with JPMorgan. Operator: Our next question comes from Robert Moskow of Credit Suisse. Operator: Our last question comes from Chris Growe with Stifel. Miguel Patricio: I opened today's call saying that it's a very exciting time to be at Kraft Heinz, and let me tell you why we think that way. First, we are very proud because we've been able to navigate through all the uncertainties over the last 2 years, at the same time that we are building a much better tomorrow. And that's not easy in moments like this. We are a very company -- in a very different company today. We are much more growth-oriented. We have improved our portfolio mix, and today, just the platforms where we are working, and we have focused, Taste Elevation is about 30% of our business today. It's big and growing, and profitable. And just to put it in perspective, it's bigger and more profitable than McCormick, just to give you an example. We have consistent double-digit net sales growth in emerging markets. Our business in foodservice is strong and growing. And we are investing more in marketing in our brands and doing a much better job, so really, the profile in terms of growth is very different. From an efficiency standpoint, I think that we are in a much better place, not only because of the $2 billion that we talked about 3 years ago, when we delivered last year and the previous year on gross savings and supply, but efficiencies across the board, I mean, from marketing to distribution and these partnerships now with technology companies that will help us accelerate these efficiencies. Finally, I think that we have a very different situation from a financial flexibility standpoint. With the discipline we had in the last 2 years, put us back in investment grade, and in a record time, just in 2 years. And going forward, we will continue generating free cash flow conversion at a rate of 100%, and we'll look to acquire business and capabilities that can be much more powerful when combined with the scale of our portfolio. All is, of course, with a lot of discipline in pricing. So that's why it's exciting to be at this moment working at Kraft Heinz. Thank you. Andre Maciel: Thank you, Chris. Thank you, Chris. You're pretty good. Operator: Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.
Kraft Heinz Company's Financial Overview: A Deep Dive into Q1 2025 Earnings
- Earnings Per Share (EPS) of $0.62, surpassing estimates.
- Revenue fell slightly short at approximately $5.9 billion against the expected $6.01 billion.
- Key financial ratios like price-to-earnings (P/E) ratio of 12.67 and debt-to-equity ratio of 0.40 highlight the company's market valuation and financial health.
Kraft Heinz Company, listed as NASDAQ:KHC, is a major player in the food and beverage industry, known for its wide range of products. The company competes with other giants like Nestlé and Unilever. On April 29, 2025, Kraft Heinz reported its earnings, showcasing an earnings per share (EPS) of $0.62, surpassing the estimated $0.60. However, its revenue of approximately $5.9 billion fell slightly short of the expected $6.01 billion.
In the first quarter of 2025, Kraft Heinz focused on managing controllable factors and investing in quality, taste, and value, as highlighted by CEO Carlos Abrams-Rivera. Despite economic uncertainties, the company achieved results that aligned with their top-line expectations. This strategic focus is reflected in their financial metrics, such as a price-to-earnings (P/E) ratio of 12.67, indicating how the market values its earnings.
The company's price-to-sales ratio of 1.33 suggests that the stock price is relatively aligned with its revenue. Additionally, the enterprise value to sales ratio of 2.05 reflects the company's total valuation compared to its sales, providing a broader perspective on its market position. These metrics are crucial for investors assessing the company's financial health and market standing.
Kraft Heinz's enterprise value to operating cash flow ratio of 12.66 offers insight into its cash flow generation relative to its valuation. With an earnings yield of 7.89%, the company provides a return on investment based on its earnings, which can be attractive to investors seeking stable returns. The debt-to-equity ratio of 0.40 indicates a moderate level of debt, suggesting a balanced approach to financing.
Lastly, the current ratio of 1.06 suggests that Kraft Heinz can cover its short-term liabilities with its short-term assets, reflecting its ability to manage liquidity effectively. These financial metrics collectively paint a picture of a company that, despite facing revenue challenges, remains committed to delivering value to its shareholders and maintaining financial stability.
Kraft Heinz Company's Financial Overview: A Deep Dive into Q1 2025 Earnings
- Earnings Per Share (EPS) of $0.62, surpassing estimates.
- Revenue fell slightly short at approximately $5.9 billion against the expected $6.01 billion.
- Key financial ratios like price-to-earnings (P/E) ratio of 12.67 and debt-to-equity ratio of 0.40 highlight the company's market valuation and financial health.
Kraft Heinz Company, listed as NASDAQ:KHC, is a major player in the food and beverage industry, known for its wide range of products. The company competes with other giants like Nestlé and Unilever. On April 29, 2025, Kraft Heinz reported its earnings, showcasing an earnings per share (EPS) of $0.62, surpassing the estimated $0.60. However, its revenue of approximately $5.9 billion fell slightly short of the expected $6.01 billion.
In the first quarter of 2025, Kraft Heinz focused on managing controllable factors and investing in quality, taste, and value, as highlighted by CEO Carlos Abrams-Rivera. Despite economic uncertainties, the company achieved results that aligned with their top-line expectations. This strategic focus is reflected in their financial metrics, such as a price-to-earnings (P/E) ratio of 12.67, indicating how the market values its earnings.
The company's price-to-sales ratio of 1.33 suggests that the stock price is relatively aligned with its revenue. Additionally, the enterprise value to sales ratio of 2.05 reflects the company's total valuation compared to its sales, providing a broader perspective on its market position. These metrics are crucial for investors assessing the company's financial health and market standing.
Kraft Heinz's enterprise value to operating cash flow ratio of 12.66 offers insight into its cash flow generation relative to its valuation. With an earnings yield of 7.89%, the company provides a return on investment based on its earnings, which can be attractive to investors seeking stable returns. The debt-to-equity ratio of 0.40 indicates a moderate level of debt, suggesting a balanced approach to financing.
Lastly, the current ratio of 1.06 suggests that Kraft Heinz can cover its short-term liabilities with its short-term assets, reflecting its ability to manage liquidity effectively. These financial metrics collectively paint a picture of a company that, despite facing revenue challenges, remains committed to delivering value to its shareholders and maintaining financial stability.
Kraft Heinz Slips 4% as Weak 2025 Outlook Overshadows Q4 Earnings Beat
Kraft Heinz (NASDAQ:KHC) saw its shares fall more than 4% intra-day today after issuing a disappointing 2025 earnings forecast, despite delivering better-than-expected fourth-quarter earnings.
For Q4 2024, the food giant reported earnings per share of $0.84, exceeding analyst expectations of $0.78. However, revenue fell short, coming in at $6.58 billion, just below the $6.69 billion consensus estimate. Organic revenue declined by 3.1% year-over-year, reflecting ongoing challenges in consumer demand and pricing adjustments.
While Kraft Heinz emphasized profitability discipline and shareholder returns, including $2.7 billion in capital distributed to investors, its 2025 outlook disappointed the market. The company expects full-year EPS between $2.63 and $2.74, significantly below the consensus estimate of $3.04.
Management remains focused on executing its strategic priorities, projecting gradual organic sales improvement each quarter in 2025. However, the company anticipates flat to slightly positive pricing contributions, indicating limited pricing power in the near term.
Kraft Heinz Company (NASDAQ: KHC) Fourth-Quarter Earnings Overview
- Earnings Per Share (EPS) of $0.84, surpassing expectations due to tax benefits and reduced share count.
- Revenue of $6.58 billion missed forecasts, reflecting challenges in organic sales amid inflation.
- Strategic initiatives focusing on product innovation and emerging markets, despite a 2% decline in premarket shares.
Kraft Heinz Company (NASDAQ: KHC) is a major player in the global food and beverage industry, known for its iconic brands like Kraft, Heinz, Philadelphia, and Oscar Mayer. The company focuses on leveraging its brand equity to adapt to changing consumer demands. Despite its strong brand presence, Kraft Heinz faces competition from other food giants like Nestlé and Unilever.
On February 12, 2025, Kraft Heinz reported its fourth-quarter earnings, revealing a mixed performance. The company achieved an EPS of $0.84, surpassing the expected $0.78. This positive result was mainly due to unexpected tax benefits and a reduced number of outstanding shares. However, the company's revenue of $6.58 billion fell short of the $6.66 billion forecast, highlighting challenges in organic sales.
Kraft Heinz's revenue shortfall is attributed to declining demand for its higher-priced products, such as Lunchables and packaged meats. This decline is largely due to persistent inflation, which has led to decreased spending from middle-to-lower income groups on items like condiments and spices. As a result, the company's shares experienced a 2% decline during premarket trading.
Despite these challenges, Kraft Heinz remains committed to strategic initiatives aimed at improving profitability. The company returned $2.7 billion in capital to its stockholders and plans to focus on product innovation and expanding distribution in emerging markets. CEO Carlos Abrams-Rivera emphasized the importance of these efforts in enhancing the company's top line performance.
Financially, Kraft Heinz maintains a moderate level of debt with a debt-to-equity ratio of approximately 0.42. The company's current ratio of about 1.06 indicates a slightly higher level of current assets compared to current liabilities. With a price-to-earnings (P/E) ratio of 26.13 and an earnings yield of 3.83%, Kraft Heinz continues to navigate the challenges of the food and beverage market while focusing on long-term growth strategies.
Kraft Heinz Slips 4% as Weak 2025 Outlook Overshadows Q4 Earnings Beat
Kraft Heinz (NASDAQ:KHC) saw its shares fall more than 4% intra-day today after issuing a disappointing 2025 earnings forecast, despite delivering better-than-expected fourth-quarter earnings.
For Q4 2024, the food giant reported earnings per share of $0.84, exceeding analyst expectations of $0.78. However, revenue fell short, coming in at $6.58 billion, just below the $6.69 billion consensus estimate. Organic revenue declined by 3.1% year-over-year, reflecting ongoing challenges in consumer demand and pricing adjustments.
While Kraft Heinz emphasized profitability discipline and shareholder returns, including $2.7 billion in capital distributed to investors, its 2025 outlook disappointed the market. The company expects full-year EPS between $2.63 and $2.74, significantly below the consensus estimate of $3.04.
Management remains focused on executing its strategic priorities, projecting gradual organic sales improvement each quarter in 2025. However, the company anticipates flat to slightly positive pricing contributions, indicating limited pricing power in the near term.
Kraft Heinz Company (NASDAQ: KHC) Fourth-Quarter Earnings Overview
- Earnings Per Share (EPS) of $0.84, surpassing expectations due to tax benefits and reduced share count.
- Revenue of $6.58 billion missed forecasts, reflecting challenges in organic sales amid inflation.
- Strategic initiatives focusing on product innovation and emerging markets, despite a 2% decline in premarket shares.
Kraft Heinz Company (NASDAQ: KHC) is a major player in the global food and beverage industry, known for its iconic brands like Kraft, Heinz, Philadelphia, and Oscar Mayer. The company focuses on leveraging its brand equity to adapt to changing consumer demands. Despite its strong brand presence, Kraft Heinz faces competition from other food giants like Nestlé and Unilever.
On February 12, 2025, Kraft Heinz reported its fourth-quarter earnings, revealing a mixed performance. The company achieved an EPS of $0.84, surpassing the expected $0.78. This positive result was mainly due to unexpected tax benefits and a reduced number of outstanding shares. However, the company's revenue of $6.58 billion fell short of the $6.66 billion forecast, highlighting challenges in organic sales.
Kraft Heinz's revenue shortfall is attributed to declining demand for its higher-priced products, such as Lunchables and packaged meats. This decline is largely due to persistent inflation, which has led to decreased spending from middle-to-lower income groups on items like condiments and spices. As a result, the company's shares experienced a 2% decline during premarket trading.
Despite these challenges, Kraft Heinz remains committed to strategic initiatives aimed at improving profitability. The company returned $2.7 billion in capital to its stockholders and plans to focus on product innovation and expanding distribution in emerging markets. CEO Carlos Abrams-Rivera emphasized the importance of these efforts in enhancing the company's top line performance.
Financially, Kraft Heinz maintains a moderate level of debt with a debt-to-equity ratio of approximately 0.42. The company's current ratio of about 1.06 indicates a slightly higher level of current assets compared to current liabilities. With a price-to-earnings (P/E) ratio of 26.13 and an earnings yield of 3.83%, Kraft Heinz continues to navigate the challenges of the food and beverage market while focusing on long-term growth strategies.
Kraft Heinz Stock Drops 4% on Guidance Cut
Kraft Heinz (NASDAQ:KHC) reported third-quarter earnings that matched analyst expectations but narrowed its full-year outlook, leading to a 4% decline in its stock price intra-day today. The company posted adjusted earnings per share of $0.75, slightly above the consensus of $0.74, with revenue at $6.4 billion, just under the $6.43 billion forecast and reflecting a 2.8% year-over-year decline. Organic net sales also dropped 2.2% from the prior year.
Kraft Heinz revised its full-year 2024 guidance, indicating growth at the low end of its previously forecasted range for organic net sales, adjusted operating income, and adjusted EPS, now anticipated to grow between $3.01 and $3.07 per share.
CEO Carlos Abrams-Rivera highlighted growth in the Global Away From Home and Emerging Markets segments but acknowledged a slower-than-expected recovery in U.S. Retail, emphasizing a commitment to the company's long-term strategy. Kraft Heinz reported a net loss of $290 million in Q3, primarily due to $1.4 billion in non-cash impairment charges related to its Lunchables brand and Continental Europe operations.
