NASDAQ$KHC

Kraft Heinz Co · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Kraft Heinz's first quarter 2024 results were reported, showing a decrease in net sales but an increase in operating income.

Kraft Heinz reported first quarter results with net sales decreasing by 1.2% and organic net sales decreasing by 0.5%. However, operating income increased by 4.7% and adjusted operating income increased by 1.7%. The company reaffirmed its full year outlook.

  • Net sales decreased by 1.2%; Organic Net Sales decreased by 0.5%.
  • Gross profit margin increased 240 basis points to 35.0%.
  • Operating Income increased 4.7%; Adjusted Operating Income increased 1.7%.
  • Diluted EPS was $0.66, down 2.9%; Adjusted EPS was $0.69, up 1.5%.

Headline financials

Total Revenue

$6.41B

Previous: $6.49B-1.2%
EPS

$0.66

Previous: $0.68-2.9%
Capital Expenditures

-$294M

Previous: $266M-210.5%
Free Cash Flow

$507M

Previous: $220M+130.5%
Net Income

$801M

Previous: $837M-4.3%
Operating Income

$1.3B

Previous: $1.24B+4.7%
Gross Profit

$2.24B

Previous: $2.11B+6.2%
Cash & Equivalents

$1.63B

Previous: $826M+96.9%
Total Assets

$90.3B

Previous: $90.9B-0.7%
Stock-Based Comp

$31M

Previous: $31M+0.0%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.41B

Q1 2024-1.2%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

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

  • North America
    $5B-0.4%

Forward guidance

The Company is reaffirming its outlook for Organic Net Sales, Adjusted Operating Income, and Adjusted EPS for fiscal year 2024.

Tailwinds

  • Organic Net Sales growth of 0 to 2 percent versus the prior year. The Company expects a positive contribution from price throughout the year, with volumes inflecting positive in the second half of the year.
  • Adjusted Operating Income growth of 2 to 4 percent versus the prior year.
  • Adjusted Gross Profit Margin expansion in the range of 50 to 100 basis points versus the prior year, compared to the previous expectation of 25 to 75 basis points versus the prior year.
  • Adjusted EPS growth of 1 to 3 percent, or in the range of $3.01 to $3.07.
  • The Company expects an effective tax rate on Adjusted EPS to be in the range of 20 to 22 percent.

Headwinds

  • The Company expects an unfavorable impact of approximately $45 million within interest expense and other expense/(income) versus the prior year.
  • This is primarily driven by foreign currency headwinds and debt refinancing at a higher rate.
  • The outlook does not contemplate any potential additional share repurchases in 2024.
  • Net sales decreased 1.2 percent versus the year-ago period to $6.4 billion, including a negative 0.6 percentage point impact from foreign currency and a negative 0.1 percentage point impact from divestitures.
  • Volume/mix declined 3.2 percentage points versus the prior year period, with declines in the North America and International Developed Markets segments that were primarily driven by elasticity impacts from pricing actions and the reduction of Supplemental Nutrition Assistance Program (“SNAP”) benefits in the United States

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 2024

Historical avgQ1 2024

-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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