NASDAQ$KHC

Kraft Heinz Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Kraft Heinz's performance was marked by a decrease in net sales and organic net sales, alongside an increase in gross profit margin and adjusted operating income.

Kraft Heinz reported a decrease in net sales by 3.6% and organic net sales by 2.4%. However, the company saw an increase in gross profit margin by 180 basis points and adjusted operating income by 2.0%. Diluted EPS decreased significantly, while adjusted EPS saw a slight decrease.

  • Net sales decreased by 3.6%, with organic net sales down by 2.4%.
  • Gross profit margin increased by 180 basis points to 35.4%.
  • Operating income decreased significantly by 62.1%, while adjusted operating income increased by 2.0%.
  • Diluted EPS was $0.08, a decrease of 90.1%, and adjusted EPS was $0.78, down by 1.3%.

Headline financials

Total Revenue

$6.48B

Previous: $6.72B-3.6%
EPS

$0.08

Previous: $0.79-89.9%
Organic Net Sales Growth

0.0%

Previous: 4.0%-100.0%
Capital Expenditures

-$543M

Previous: -$508M-6.9%
Free Cash Flow

-$441M

Previous: $492M-189.6%
Net Income

$102M

Previous: $1B-89.8%
Operating Income

$522M

Previous: $1.38B-62.1%
Gross Profit

$2.29B

Previous: $2.26B+1.5%
Cash & Equivalents

$900M

Previous: $947M-5.0%
Total Assets

$88.8B

Previous: $91B-2.4%
Stock-Based Comp

$34M

Previous: $46M-26.1%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.48B

Q2 2024-3.6%vs Q2 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

For fiscal year 2024, the Company now expects Organic Net Sales to be down 2 percent to flat versus the prior year, Adjusted Operating Income growth of 1 to 3 percent versus the prior year, and Adjusted EPS growth of 1 to 3 percent, or in the range of $3.01 to $3.07.

Tailwinds

  • Continued ramp up of innovation and renovation, particularly in North America Retail.
  • Increasing marketing investment to continue to drive brand superiority across our portfolio.
  • Expect to increase distribution through our go-to-market strategy and global activations in Away From Home and Emerging Markets.
  • Selectively increase investments in promotions, understanding that the consumer is looking for value.
  • Expecting Adjusted Gross Profit Margin expansion in the range of 75 to 125 basis points versus the prior year.

Headwinds

  • Organic Net Sales to be down 2 percent to flat versus the prior year, compared to the previous expectation of 0 to 2 percent growth.
  • Adjusted Operating Income growth of 1 to 3 percent versus the prior year, compared to the previous expectation of 2 to 4 percent growth.
  • Effective tax rate on Adjusted EPS to be in the range of 20 to 22 percent.
  • An unfavorable impact of approximately $30 million within interest expense and other expense/(income) versus the prior year.
  • The outlook does not contemplate any potential additional share repurchases in 2024.

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 2024

Historical avgQ2 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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