NASDAQ$KHC

Kraft Heinz Co · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported higher net sales and Organic Net Sales growth due to strong demand for its leading brands, as well as the impact of divestitures, unfavorable currency, and higher costs versus the prior year.

Kraft Heinz reported strong Q1 2020 results with net sales up 3.3% to $6.2 billion and Organic Net Sales increasing 6.2%. This growth was primarily driven by increased consumer demand related to the COVID-19 pandemic. However, net income decreased by 6.7% to $378 million, and Adjusted EPS decreased by 12.1% to $0.58.

  • Net sales increased by 3.3% to $6.2 billion, driven by strong demand for leading brands.
  • Organic Net Sales grew by 6.2% due to increased consumer demand related to the COVID-19 pandemic.
  • Net income attributable to common shareholders decreased to $378 million, and diluted EPS decreased to $0.31.
  • Adjusted EPS decreased 12.1% to $0.58, primarily reflecting lower other income and unfavorable changes in non-cash equity award compensation expenses.

Headline financials

Total Revenue

$6.16B

Previous: $5.96B+3.3%
EPS (adj)

$0.58

Previous: $0.66-12.1%
Organic Net Sales Growth

6.2%

No prior period
Capital Expenditures

-$131M

Previous: -$249M+47.4%
Free Cash Flow

$247M

Previous: $156M+58.3%
Net Income

$378M

Previous: $405M-6.7%
Operating Income

$770M

Previous: $562M+37.0%
Gross Profit

$1.86B

Previous: $2.01B-7.6%
Cash & Equivalents

$5.4B

Previous: $1.1B+393.0%
Total Assets

$104B

Previous: $104B+0.5%
Stock-Based Comp

$33M

Previous: $9M+266.7%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.16B

Q1 2020+3.3%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Kraft Heinz · $4.5B total across 1 segment · Q1 2020

  • North America
    $4.5B

Forward guidance

The impact of the COVID-19 pandemic on the Company’s full-year 2020 results remains uncertain. The Company believes low to mid-single-digit Organic Net Sales growth and mid-single-digit constant-currency Adjusted EBITDA growth versus the prior year period is a reasonable expectation for second quarter performance.

Tailwinds

  • Incremental demand from retail customers due to an increase in at-home consumption, particularly in developed markets is expected.
  • Low to mid-single-digit Organic Net Sales growth is expected for the second quarter.
  • Mid-single-digit constant-currency Adjusted EBITDA growth is expected for the second quarter.

Headwinds

  • The impact of the COVID-19 pandemic on the Company’s full-year 2020 results remains uncertain.
  • Reduced demand in foodservice channels on a global basis is expected.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.1%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-2.7%

Avg return

30 days after

40%

21 / 53 earnings

Positive

+14.4%

Q3 2019

Best reaction

-27.6%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%+3.3%+0.3%
Q4 2025+0.4%-0.4%-9.3%
Q3 2025-4.1%-4.7%-0.0%
Q1 2025+0.2%-0.6%-6.2%
Q4 2024-3.2%-2.2%+2.2%
Q3 2024-3.9%-4.1%-8.1%
Q2 2024+4.6%+4.0%+4.7%
Q1 2024-4.9%-7.4%-8.4%
Q4 2023-3.2%-3.7%-4.9%
Q3 2023+6.5%+5.8%+12.9%
Q2 2023-0.9%-2.5%-9.2%
Q1 2023+3.5%+4.1%-2.4%
Q4 2022-0.3%+0.3%-5.6%
Q3 2022+2.6%+3.8%+5.0%
Q2 2022-3.8%-3.1%-1.4%
Q1 2022+3.1%-0.8%-10.6%
Q4 2021+9.0%+10.9%+8.5%
Q3 2021+0.1%+0.8%-4.4%
Q2 2021-5.1%-4.2%-8.0%
Q1 2021+2.9%+5.6%+8.6%
Q4 2020+4.4%+4.3%+12.5%
Q3 2020+4.7%+8.8%+12.4%
Q2 2020-3.3%-1.4%-1.9%
Q1 2020-3.8%-5.2%-0.2%
Q4 2019-10.5%-9.0%-20.2%
Q3 2019+14.4%+15.5%+7.0%
Q2 2019-14.2%-15.9%-11.6%
Q1 2019-14.2%-15.9%-11.6%
Q4 2018-27.6%-31.4%-33.1%
Q3 2018-7.7%-2.7%-7.0%
Q2 2018+4.9%+1.5%-1.9%
Q1 2018-1.3%+5.6%+3.5%
Q4 2017-5.5%-7.2%-10.1%
Q2 2013-5.5%-7.2%-10.1%
Q3 2017+0.9%-0.4%+5.0%
Q2 2017-0.2%-0.8%-6.9%
Q1 2017+0.8%+0.5%+5.1%
Q4 2016-3.9%+6.4%+1.3%
Q3 2016-4.7%+0.2%-8.2%
Q2 2016+4.6%+5.7%+5.5%
Q1 2015+5.0%
Q1 2016+5.5%
Q4 2015+6.6%
Q3 2014-5.5%
Q3 2015-5.0%
Q1 2013-0.6%
Q2 2014-0.6%
Q1 2014-0.6%
Q4 2012-0.6%
Q4 2014-0.6%
Q4 2013-0.6%
Q3 2013-0.6%
Q2 2015-0.6%
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011

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