NASDAQ$KHC

Kraft Heinz Co · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net sales growth across all six Consumer Platforms due to sustained at-home consumption momentum.

Kraft Heinz reported a 6.0% increase in net sales and a 6.3% increase in Organic Net Sales for Q3 2020. The company has raised its full-year outlook to mid-single-digit Organic Net Sales growth and high-single-digit Constant Currency Adjusted EBITDA growth.

  • Q3 net sales increased 6.0%; Organic Net Sales increased 6.3%.
  • Q3 gross profit increased 20.4%.
  • Q3 operating income declined 2.8%, net income attributable to common shareholders decreased 33.7%, and diluted EPS decreased 33.8% due to charges related to the pending Cheese Transaction.
  • Adjusted EBITDA increased 13.5% and Adjusted EPS increased 1.4%.

Headline financials

Total Revenue

$6.44B

Previous: $6.08B+6.0%
EPS (adj)

$0.70

Previous: $0.69+1.4%
Organic Net Sales Growth

6.3%

No prior period
Capital Expenditures

-$397M

Previous: -$581M+31.7%
Free Cash Flow

$200M

Previous: $318M-37.1%
Net Income

$597M

Previous: $899M-33.6%
Operating Income

$1.15B

Previous: $1.18B-2.8%
Gross Profit

$2.34B

Previous: $1.95B+20.4%
Cash & Equivalents

$2.72B

Previous: $2.32B+17.5%
Total Assets

$98.1B

Previous: $103B-4.6%
Stock-Based Comp

$41M

Previous: $11M+272.7%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.44B

Q3 2020+6%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Kraft Heinz · $4.71B total across 1 segment · Q3 2020

  • North America
    $4.71B+7.4%

Forward guidance

The Company believes mid-single-digit Organic Net Sales growth and high-single-digit Constant Currency Adjusted EBITDA growth versus the prior year period are reasonable expectations for fourth-quarter performance. This would result in mid-single-digit Organic Net Sales growth and high-single-digit Constant Currency Adjusted EBITDA growth for the full 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 Q3 2020

Historical avgQ3 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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