NASDAQ$KHC

Kraft Heinz Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Kraft Heinz's first quarter performance in 2022 reflected strong price realization, resilient retail demand, and foodservice growth.

Kraft Heinz reported a decrease in net sales by 5.5% to $6.0 billion, but organic net sales increased by 6.8%. Net income increased by 37.5% to $781 million, while Adjusted EBITDA decreased by 15.1% to $1.3 billion. The company is raising its full-year outlook for organic net sales growth.

  • Net sales decreased 5.5 percent versus the year-ago period to $6.0 billion.
  • Organic Net Sales increased 6.8 percent versus the prior year period.
  • Net income increased 37.5 percent versus the year-ago period to $781 million.
  • Adjusted EBITDA decreased 15.1 percent versus the year-ago period to $1.3 billion.

Headline financials

Total Revenue

$6.05B

Previous: $6.39B-5.5%
EPS (adj)

$0.60

Previous: $0.72-16.7%
Organic Net Sales Growth

6.8%

Previous: 2.5%+172.0%
Capital Expenditures

-$214M

Previous: -$227M+5.7%
Free Cash Flow

$562M

Previous: $336M+67.3%
Net Income

$776M

Previous: $563M+37.8%
Operating Income

$1.12B

Previous: $1.09B+2.4%
Gross Profit

$1.93B

Previous: $2.2B-12.3%
Cash & Equivalents

$2.98B

Previous: $2.36B+26.2%
Total Assets

$93.9B

Previous: $98.7B-4.9%
Stock-Based Comp

$34M

Previous: $51M-33.3%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.05B

Q1 2022-5.5%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Kraft Heinz · $5B total across 1 segment · Q3 2023

  • North America
    $5B-0.4%

Forward guidance

The Company continues to expect strong financial performance in 2022. The Company is raising expectations for 2022 Organic Net Sales to a mid-single-digit percentage increase versus the prior year period and continues to expect Adjusted EBITDA to be in the range of $5.8 billion to $6.0 billion.

Tailwinds

  • Strong performance to date
  • Ongoing business momentum
  • Additional pricing actions to mitigate ongoing inflation
  • 53rd week in 2022
  • Ongoing efforts to manage inflationary pressures, including unlocking gross efficiencies

Headwinds

  • Impact of divestitures versus the prior year
  • Inflationary pressures
  • Higher commodity costs, primarily in dairy, packaging materials, and meat
  • Higher supply chain costs, reflecting inflationary pressure in procurement, logistics and manufacturing costs.
  • Uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items impacting comparability

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 2022

Historical avgQ1 2022

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro