NASDAQ$KHC

Kraft Heinz Co · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Kraft Heinz reported strong results, ending Q4 with solid momentum.

Kraft Heinz reported a strong fourth quarter and full year 2022, with net sales increasing by 10.0% and organic net sales growth of 10.4%. Net income increased significantly, driven by non-cash impairment losses in the prior year period and lower interest expense. The company provided a full year 2023 outlook for organic net sales, adjusted EBITDA, and adjusted EPS.

  • Net sales increased 10.0%, with Organic Net Sales growth of 10.4%.
  • Net income increased 447.9%.
  • Adjusted EBITDA increased 8.6%.
  • Diluted EPS was $0.72, up 442.9%. Adjusted EPS was $0.85, up 7.6%.

Headline financials

Total Revenue

$7.38B

Previous: $6.71B+10.0%
EPS (adj)

$0.85

Previous: $0.79+7.6%
Organic Net Sales Growth

10.4%

Previous: 3.9%+166.7%
Capital Expenditures

$284M

Previous: $250M+13.6%
Free Cash Flow

$1.55B

Previous: $4.46B-65.2%
Net Income

$887M

Previous: -$255M+447.8%
Operating Income

$1.23B

Previous: -$20M+6230.0%
Gross Profit

$2.36B

Previous: $2.16B+9.3%
Cash & Equivalents

$1.04B

Previous: $3.45B-69.8%
Total Assets

$90.5B

Previous: $93.4B-3.1%
Stock-Based Comp

$41M

Previous: $42M-2.4%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$7.38B

Q4 2022+10%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Kraft Heinz · $5.68B total across 1 segment · Q4 2022

  • North America
    $5.68B

Forward guidance

The Company expects 2023 Organic Net Sales growth of 4 to 6 percent versus 2022. Constant Currency Adjusted EBITDA growth from 2022 to 2023 is expected to range between 2 to 4 percent, or 4 to 6 percent when excluding the impact from the 53rd week in 2022. Adjusted EPS is expected to be $2.67 to $2.75.

Tailwinds

  • Organic Net Sales growth of 4 to 6 percent versus 2022.
  • Constant Currency Adjusted EBITDA growth from 2022 to 2023 is expected to range between 2 to 4 percent, or 4 to 6 percent when excluding the impact from the 53rd week in 2022.
  • Anticipates high single-digit inflation for the year, with pricing and gross efficiencies contributing to Adjusted Gross Profit Margin recovery.
  • Adjusted Gross Profit Margin expansion is expected to fund incremental investments across technology, marketing, and people.
  • Adjusted EPS is expected to be $2.67 to $2.75.

Headwinds

  • Includes approximately a $0.04 negative impact from expected unfavorable changes in non-cash pension and post-retirement benefits.
  • A $0.04 currency headwind at current foreign exchange rates.
  • The expected 2023 year-over-year Adjusted EPS performance reflects a negative $0.06 impact from lapping the 53rd week in 2022.

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 Q4 2022

Historical avgQ4 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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