NASDAQ$KHC

Kraft Heinz Co · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Kraft Heinz reported strong results, navigating a volatile environment and driving net sales growth across North America and International segments.

Kraft Heinz reported a 2.9% increase in net sales to $6.5 billion, with organic net sales up 11.6%. Net income decreased by 40.8% to $435 million, while Adjusted EBITDA decreased by 5.5% to $1.4 billion. The company reaffirms its full-year outlook for organic net sales and raises the lower end of its adjusted EBITDA range.

  • Net sales increased 2.9 percent versus the year-ago period to $6.5 billion.
  • Organic Net Sales increased 11.6 percent versus the prior year period.
  • Net income decreased 40.8 percent versus the year-ago period to $435 million.
  • Adjusted EBITDA decreased 5.5 percent versus the year-ago period to $1.4 billion.

Headline financials

Total Revenue

$6.51B

Previous: $6.32B+2.9%
EPS (adj)

$0.63

Previous: $0.65-3.1%
Organic Net Sales Growth

11.6%

Previous: 1.3%+792.3%
Capital Expenditures

-$632M

Previous: -$655M+3.5%
Free Cash Flow

-$200M

Previous: $78M-356.4%
Net Income

$432M

Previous: $733M-41.1%
Operating Income

$751M

Previous: $1.16B-35.0%
Gross Profit

$1.84B

Previous: $2.03B-9.1%
Cash & Equivalents

$997M

Previous: $2.27B-56.1%
Total Assets

$90B

Previous: $94.9B-5.2%
Stock-Based Comp

$28M

Previous: $51M-45.1%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.51B

Q3 2022+2.9%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Kraft Heinz · $5.02B total across 1 segment · Q3 2022

  • North America
    $5.02B

Forward guidance

The Company continues to expect strong financial performance for 2022 and reaffirms 2022 Organic Net Sales growth of a high-single-digit percentage increase versus the prior year period. It now expects 2022 Adjusted EBITDA to be $5.9 billion to $6.0 billion as compared to the prior expectation of $5.8 billion to $6.0 billion. Due to uncertainty with regard to the potential impact of continued upstream supply chain challenges faced by the industry, the Company anticipates coming in at the lower end of this new Adjusted EBITDA range.

Tailwinds

  • Reaffirms 2022 Organic Net Sales growth of a high-single-digit percentage increase versus the prior year period.
  • Raised the lower end of its expected 2022 Adjusted EBITDA range to $5.9 billion to $6.0 billion.
  • Strong Organic Net Sales.
  • Ongoing efforts to manage inflationary pressures.
  • Unlocking gross efficiencies, as it continues to invest in long-term growth.

Headwinds

  • Uncertainty with regard to the potential impact of continued upstream supply chain challenges faced by the industry.
  • Anticipates coming in at the lower end of this new Adjusted EBITDA range.
  • Reflects a 53rd week in 2022.
  • Increase in foreign currency headwinds based on current exchange rates.
  • Impact of divestitures 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 Q3 2022

Historical avgQ3 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

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