NASDAQ$KHC

Kraft Heinz Co · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Kraft Heinz's financial performance was reported for Q3 2024, with a decrease in net sales and operating income, but an increase in adjusted EPS.

Kraft Heinz reported a decrease in net sales by 2.8% and a significant decrease in operating income due to non-cash impairment losses. However, adjusted EPS increased by 4.2%. The company is narrowing its full-year outlook for organic net sales, adjusted operating income, and adjusted EPS.

  • Net sales decreased by 2.8%, with organic net sales down by 2.2%.
  • Operating income decreased significantly due to non-cash impairment losses of $1.4 billion.
  • Adjusted EPS increased by 4.2% to $0.75.
  • The company is narrowing full year outlook for organic net sales, Adjusted Operating Income and Adjusted EPS.

Headline financials

Total Revenue

$6.38B

Previous: $6.57B-2.8%
EPS

-$0.24

Previous: $0.72-133.3%
Adjusted Operating Income

$1.33B

No prior period
Adjusted Gross Profit Margin

34.3%

No prior period
Capital Expenditures

-$777M

Previous: -$779M+0.3%
Free Cash Flow

-$1.07B

Previous: -$517M-106.4%
Net Income

-$290M

Previous: $262M-210.7%
Operating Income

-$101M

Previous: $653M-115.5%
Gross Profit

$2.19B

Previous: $2.24B-2.2%
Cash & Equivalents

$1.28B

Previous: $1.05B+22.1%
Total Assets

$88.6B

Previous: $89.7B-1.2%
Stock-Based Comp

$18M

Previous: $33M-45.5%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.38B

Q3 2024-2.8%vs Q3 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 at the low end of the previous guidance range of down 2 percent to flat versus the prior year, Adjusted Operating Income growth to be at the low end of the previous guidance range of 1 to 3 percent versus the prior year and Adjusted EPS growth to be at the low end of the previous guidance range of 1 to 3 percent, or in the range of $3.01 to $3.07.

Tailwinds

  • Efficiency initiatives are expected to benefit the Adjusted Operating Income.
  • The company expects an effective tax rate on Adjusted EPS to be approximately 21 percent.
  • The company expects interest expense and other expense/(income) to be relatively flat versus the prior year.
  • Continued momentum in Global Away From Home and Emerging Markets.
  • Proven ability to sustainably unlock efficiencies and generate strong cash flow.

Headwinds

  • Organic Net Sales to be at the low end of the previous guidance range of down 2 percent to flat versus the prior year.
  • Adjusted Operating Income growth to be at the low end of the previous guidance range of 1 to 3 percent versus the prior year.
  • Adjusted EPS growth to be at the low end of the previous guidance range of 1 to 3 percent, or in the range of $3.01 to $3.07.
  • U.S. Retail business is expected to have a more elongated recovery, driven by specific categories that continue to experience pressure.
  • Guidance does not reflect any impact from future potential share repurchases.

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 2024

Historical avgQ3 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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