NASDAQ$KHC

Kraft Heinz Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Kraft Heinz's second quarter performance in 2021 reflected resilience amidst industry challenges, with strong net sales growth compared to 2019 and effective management of inflationary pressures.

Kraft Heinz reported a decrease in net sales by 0.5 percent to $6.6 billion, but an increase of 3.2 percent compared to 2019. The company experienced a net loss of $25 million, which is an increase of 98.5 percent versus the year-ago period. Adjusted EPS was $0.78, a decrease of 2.5 percent versus the prior year.

  • Net sales decreased 0.5% year-over-year to $6.6 billion, but increased 3.2% compared to 2019.
  • Organic Net Sales decreased 2.1% year-over-year, but increased 5.0% compared to 2019.
  • Net loss increased 98.5% year-over-year to $25 million, driven by changes in non-cash impairment charges.
  • Adjusted EPS decreased 2.5% year-over-year to $0.78, primarily driven by lower Adjusted EBITDA.

Headline financials

Total Revenue

$6.62B

Previous: $6.65B-0.5%
EPS (adj)

$0.78

Previous: $0.80-2.5%
Organic Net Sales Growth

-2.1%

Previous: 7.4%-128.4%
Capital Expenditures

-$431M

Previous: -$258M-67.1%
Free Cash Flow

-$458M

Previous: -$1.91B+76.0%
Net Income

-$27M

Previous: -$1.65B+98.4%
Operating Income

$1.24B

Previous: -$1.34B+192.2%
Gross Profit

$2.29B

Previous: $2.45B-6.6%
Cash & Equivalents

$3.94B

Previous: $2.81B+40.1%
Total Assets

$97B

Previous: $98.3B-1.3%
Stock-Based Comp

$53M

Previous: $40M+32.5%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.62B

Q2 2021-0.5%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Kraft Heinz · $4.74B total across 1 segment · Q2 2021

  • North America
    $4.74B-28.7%

Forward guidance

The Company continues to expect it will deliver 2021 Adjusted EBITDA ahead of its strategic plan, and now expects Adjusted EBITDA to be ahead of 2019 as well. For the third quarter of 2021, the Company currently expects a mid-single-digit percentage increase in Organic Net Sales and a low-single-digit percentage decline in Constant Currency Adjusted EBITDA versus the third quarter of 2019.

Tailwinds

  • The Company continues to expect it will deliver 2021 Adjusted EBITDA ahead of its strategic plan
  • The Company now expects Adjusted EBITDA to be ahead of 2019 as well.
  • For the third quarter of 2021, the Company currently expects a mid-single-digit percentage increase in Organic Net Sales.
  • The Company currently expects a low-single-digit percentage decline in Constant Currency Adjusted EBITDA versus the third quarter of 2019.
  • Comparison to the 2019 period is viewed to be more meaningful than the comparable 2020 period given the exceptional, COVID-19-related consumer demand changes experienced in the 2020 period.

Headwinds

  • Net sales decreased 0.5 percent versus the year-ago period to $6.6 billion.
  • Organic Net Sales decreased 2.1 percent versus the prior year period.
  • Net income/(loss) increased 98.5 percent versus the year-ago period to a loss of $25 million.
  • Adjusted EBITDA decreased 5.2 percent versus the year-ago period to $1.7 billion.
  • Diluted EPS increased to a loss of $0.02, up 98.5 percent versus the prior year.

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 Q2 2021

Historical avgQ2 2021

-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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