NASDAQ$KHC

Kraft Heinz Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Kraft Heinz's financial performance declined due to industry headwinds and the impact of a 53rd week in the prior year, but the company is optimistic about future growth.

Kraft Heinz reported a decrease in net sales and net income for Q4 2023, impacted by a 53rd week in the prior year and industry headwinds. However, the company is optimistic about future growth, expecting positive contributions from price and volume improvements in the second half of 2024.

  • Net sales decreased by 7.1%, with organic net sales down by 0.7%.
  • Gross profit margin increased by 180 basis points to 33.8%.
  • Net income decreased by 14.6% to $757 million.
  • Adjusted EPS was $0.78, down 8.2%.

Headline financials

Total Revenue

$6.86B

Previous: $7.38B-7.1%
EPS (adj)

$0.78

Previous: $0.85-8.2%
Organic Net Sales Growth

-0.7%

Previous: 10.4%-106.7%
Capital Expenditures

-$234M

Previous: $284M-182.4%
Net Income

$757M

Previous: $887M-14.7%
Operating Income

$1.3B

Previous: $1.23B+6.0%
Gross Profit

$2.32B

Previous: $2.36B-2.0%
Stock-Based Comp

$31M

Previous: $41M-24.4%

Revenue & EPS history

Kraft Heinz · Revenue · Quarterly

$6.86B

Q4 2023-7.1%vs Q4 2022
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 expects Organic Net Sales growth of 0 to 2 percent, Adjusted Operating Income growth of 2 to 4 percent, and Adjusted EPS growth of 1 to 3 percent, or in the range of $3.01 to $3.07.

Tailwinds

  • Positive contribution from price throughout the year
  • Volumes inflecting positive in the second half of the year
  • Adjusted Gross Profit Margin is expected to expand modestly, in the range of 25 to 75 basis points versus the prior year.
  • Adjusted EPS growth of 1 to 3 percent, or in the range of $3.01 to $3.07.
  • The Company expects an effective tax rate on Adjusted EPS to be in the range of 20 to 22 percent.

Headwinds

  • Organic Net Sales growth of 0 to 2 percent versus the prior year.
  • Adjusted Operating Income growth of 2 to 4 percent versus the prior year.
  • The Company expects an unfavorable impact of approximately $45 million within interest and other expense/(income) versus the prior year.
  • This is primarily driven by foreign currency headwinds and debt refinancing that will come at a higher rate.
  • The outlook does not include the possibility of additional share buyback 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 Q4 2023

Historical avgQ4 2023

-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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