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KHC · Kraft Heinz

11 filings

10-K

KHC 10-K Annual Reports

Kraft Heinz - 11 annual reports

Filing record · 2016–202610-K1110-Q358-K161

2025
Kraft Heinz Annual Report, Year Ended Dec 27, 2025
The Kraft Heinz Company reported a sharply weaker 2025 for its fiscal year ended December 27, 2025. Net sales declined 3.5% to $24.9 billion from $25.8 billion, with Organic Net Sales down 3.4%, driven mainly by unfavorable volume/mix (4.1 pp) that more than offset higher pricing (0.7 pp). The company posted an operating loss of $4.7 billion versus operating income of $1.7 billion in 2024, and a net loss of $5.8 billion, or $(4.93) per diluted share, compared with net income of $2.7 billion, or $2.26 per diluted share, a year earlier. The results were driven primarily by impairment losses of $9.3 billion, including $6.7 billion of goodwill impairments and $2.6 billion of intangible asset impairments. Adjusted Operating Income fell 11.5% to $4.7 billion, and Adjusted EPS declined 15.0% to $2.60. The Board has paused work on the previously announced separation of the company into two independent public companies, which had been announced on September 2, 2025. The filing states that if work resumes, completion would be subject to customary conditions, including favorable tax opinions. Cash flow was steadier: operating cash flow was $4.5 billion, capital expenditures were $801 million, and dividends paid were $1.9 billion. Cash and cash equivalents rose to $2.6 billion, and total long-term debt, including the current portion, was $21.2 billion. The company declared a quarterly dividend of $0.40 per share in the first quarter of 2026. Investors should note the concentration and risk profile disclosed in the filing. Walmart Inc. accounted for approximately 21% of net sales, and Berkshire Hathaway owns approximately 27.5% of the common stock, with a prospectus supplement registering up to 325,442,152 shares for resale. The filing also discloses goodwill and intangible assets of $59.7 billion, with significant headroom risk for several reporting units and brands, and a pending IRS examination with proposed adjustments. Credit ratings are BBB (S&P), BBB with negative watch (Fitch), and Baa2 under review for downgrade (Moody's) as of the filing date.
Feb 12, 2026
2024
Kraft Heinz Annual Report, Year Ended Dec 28, 2024
The Kraft Heinz Company's 2024 fiscal year (ended December 28, 2024) saw net sales decline 3.0% to $25.8 billion, with Organic Net Sales down 2.1% to $25.9 billion, driven primarily by unfavorable volume/mix (3.5 pp) that more than offset higher pricing (1.4 pp). Reported operating income fell 63.2% to $1.7 billion because of $3.7 billion in impairment losses, including $1.6 billion of goodwill impairments and $2.0 billion of intangible asset impairments, while Adjusted Operating Income rose 1.2% to $5.4 billion. Net income was $2.7 billion and diluted EPS was $2.26, compared with $2.31 in 2023; Adjusted EPS rose 2.7% to $3.06. The effective tax rate was a benefit of 220.5%, driven mainly by recognition of a $3.0 billion non-U.S. deferred tax asset from moving certain business operations to a Netherlands subsidiary, partly offset by a $0.6 billion valuation allowance. Net cash from operating activities was $4.2 billion, capital expenditures were $1.0 billion, and dividends paid totaled $1.9 billion. Long-term debt including the current portion was $19.9 billion at year end, and the company was in compliance with its financial covenants. Berkshire Hathaway owned approximately 27.2% of common stock, and the company had about $1.9 billion remaining under its $3.0 billion share repurchase authorization. The filing also flags concentrated risk: Walmart represented about 21% of net sales, the company remains exposed to ongoing impairment risk for reporting units and brands with limited excess fair value, and an IRS examination of 2018 and 2019 transfer pricing carries proposed adjustments of roughly $200 million and $210 million in tax plus penalties. The company expects 2025 capital expenditures of about $1.0 billion and declared a $0.40 per share quarterly dividend for the first quarter of 2025.
Feb 13, 2025
2023
Kraft Heinz Annual Report, Year Ended Dec 30, 2023
The Kraft Heinz Company (Nasdaq: KHC) reported 2023 net sales of $26.64 billion, up 0.6% from $26.49 billion in 2022, with Organic Net Sales up 3.4% to $26.77 billion, primarily driven by higher pricing (8.9 pp) which more than offset unfavorable volume/mix (5.5 pp). Operating income rose 25.8% to $4.57 billion and net income rose 20.2% to $2.85 billion (net income attributable to common shareholders of $2.86 billion was not separately described as a percentage beyond the 20.8% change in the summary table). Diluted EPS increased 20.9% to $2.31, and Adjusted EPS increased 7.2% to $2.98. Adjusted EBITDA rose 5.1% to $6.31 billion. The increases were driven by higher pricing and efficiency gains, partially offset by higher commodity and supply chain costs, unfavorable volume/mix, and higher SG&A, particularly advertising. Lower non-cash impairment losses in 2023 ($662 million total versus $999 million in 2022) also contributed to the improvement. Cash generation improved, with net cash provided by operating activities of $3.98 billion versus $2.47 billion in 2022, and capital expenditures of $1.01 billion. The company paid $1.97 billion in dividends and repurchased $455 million of common stock, and it authorized a new share repurchase program of up to $3.0 billion through December 26, 2026, with approximately $2.7 billion remaining at year end. Long-term debt, including the current portion, was $20.0 billion at December 30, 2023, and the company stated it was in compliance with all financial covenants. Credit ratings were BBB (S&P and Fitch) and Baa2 (Moody's), all with stable outlooks. The filing also highlights risks. Goodwill impairment losses of $510 million and intangible asset impairment losses of $152 million were recorded in 2023, and the company identified a number of reporting units and brands with limited excess fair value that remain at heightened risk of future impairment. The company is also contesting IRS transfer pricing Notices of Proposed Adjustment for 2018 and 2019, which propose approximately $200 million and $210 million in additional U.S. federal tax excluding interest, plus penalties of approximately $85 million for each year. Berkshire Hathaway owns approximately 26.7% of common stock. The company plans to split its International segment into three operating segments in 2024, with two reportable segments effective in the first quarter of 2024.
Feb 15, 2024
2022
Kraft Heinz Annual Report, Year Ended Dec 31, 2022
The Kraft Heinz Company (Nasdaq: KHC) reported 2022 net sales of $26.5 billion, up 1.7% from $26.0 billion in 2021, with Organic Net Sales up 9.8% to $26.2 billion, driven primarily by higher pricing (13.2 pp) partly offset by unfavorable volume/mix (3.4 pp). Operating income rose 5.0% to $3.6 billion and net income more than doubled to $2.4 billion (up 131.3%), helped by lower interest expense ($921 million versus $2.0 billion) and lower impairment losses. However, Adjusted EBITDA declined 5.8% to $6.0 billion and Adjusted EPS fell 5.1% to $2.78, as higher supply chain and commodity costs, the impact of divestitures, and unfavorable volume/mix outweighed pricing and efficiency gains. Diluted EPS was $1.91 versus $0.82 in 2021. Cash flow weakened, with operating cash flow of $2.5 billion versus $5.4 billion in 2021, reflecting inventory rebuilding, higher input costs, and the prior year's cheese license proceeds. Capital expenditures were $916 million, with 2023 capex expected at about $1.1 billion. Long-term debt declined to $20.1 billion from $21.8 billion through repayments and repurchases, and Fitch and S&P upgraded the credit rating during 2022. The company remains exposed to goodwill and brand impairment risk: reporting units with 20% or less excess fair value carried $16.4 billion of goodwill, and the 2022 goodwill and intangible impairments totaled $913 million. Berkshire Hathaway owns approximately 26.6% of common stock. The filing also discloses a preliminary February 2023 settlement of a securities class action, for which the company recorded a $210 million accrual in the fourth quarter of 2022, and an ongoing IRS transfer pricing examination for 2018 and 2019. The Board declared a $0.40 per share quarterly dividend for the first quarter of 2023.
Feb 16, 2023
2021
Kraft Heinz Annual Report, Year Ended Dec 25, 2021
The Kraft Heinz Company (Nasdaq: KHC) reported 2021 net sales of $26.04 billion, down 0.5% from $26.19 billion in 2020, while Organic Net Sales rose 1.8% to $23.71 billion, driven by higher pricing (2.3 pp) that more than offset unfavorable volume/mix (0.5 pp). Divestitures reduced net sales by 3.5 pp, mainly from the Nuts and Cheese Transactions. Operating income rose 62.6% to $3.46 billion, primarily because non-cash impairment losses fell to $1.6 billion from $3.4 billion. Net income was $1.02 billion, or $0.82 diluted EPS, versus $0.29 in 2020, while Adjusted EPS increased 1.7% to $2.93 and Adjusted EBITDA decreased 4.5% to $6.37 billion. Management cited higher commodity, supply chain, and logistics costs from inflationary pressures and expects cost inflation to remain elevated through at least 2022. Interest expense rose to $2.05 billion, mainly due to a $917 million loss on extinguishment of debt from roughly $6.0 billion of senior note reductions in 2021. Long-term debt, including current portion, fell to $21.8 billion from $28.3 billion, funded largely by the Nuts Transaction (about $3.4 billion) and the Cheese Transaction (about $3.2 billion in cash). Cash from operations was $5.36 billion and capital expenditures were $905 million. The company recorded goodwill impairments of $318 million and intangible asset impairments of $1.3 billion in 2021, including a $1.24 billion Kraft brand impairment tied to the Cheese Transaction. Its Sponsors (Berkshire Hathaway and 3G Capital) own approximately 42% of common stock, and the company has an SEC settlement cost of $62 million. Management concluded internal control over financial reporting was effective as of December 25, 2021.
Feb 17, 2022
2020
Kraft Heinz Annual Report, Year Ended Dec 26, 2020
The Kraft Heinz Company reported 2020 net sales of $26.19 billion, up 4.8% from $24.98 billion in 2019, with Organic Net Sales up 6.5% to $26.32 billion, driven by volume/mix (3.4 pp) and pricing (3.1 pp). Growth was supported by at-home consumption during the COVID-19 pandemic, which more than offset declines in foodservice. However, net income attributable to common shareholders fell 81.6% to $356 million, primarily because of $3.4 billion in non-cash impairment losses in 2020 (goodwill of $2.3 billion and intangible assets of $1.1 billion), compared with $1.9 billion in 2019. Adjusted EBITDA rose 10.0% to $6.67 billion, and Adjusted EPS rose 1.1% to $2.88. The balance sheet shows total assets of $99.83 billion and long-term debt of $28.07 billion excluding the current portion. Operating cash flow was $4.93 billion, and the company paid $1.96 billion in dividends. Pending transactions include the Cheese Transaction with Lactalis for about $3.3 billion, expected to close in the first half of 2021, and a subsequent-event agreement to sell certain nuts assets to Hormel Foods for about $3.4 billion in cash. The filing also discloses an ongoing SEC investigation and USAO review related to the procurement area, along with consolidated securities, ERISA, and derivative class actions. The company states it cannot estimate its potential liability in these matters. The company previously identified material weaknesses in internal control, and as of December 26, 2020 it reported that its internal control over financial reporting was effective.
Feb 17, 2021
2019
Kraft Heinz Annual Report, Year Ended Dec 28, 2019
The Kraft Heinz Company's 10-K for fiscal 2019 reports net sales of $24.98 billion, down 4.9% from $26.27 billion in 2018, with Organic Net Sales down 1.7% to $24.96 billion. Operating income rebounded to $3.07 billion from a loss of $10.21 billion, driven mainly by lower impairment losses ($1.90 billion in 2019 versus $15.94 billion in 2018). Net income attributable to common shareholders was $1.94 billion, or $1.58 diluted EPS, while Adjusted EBITDA fell 13.7% to $6.06 billion and Adjusted EPS fell 18.8% to $2.85. Cash from operations rose to $3.55 billion, and the company reduced long-term debt to $29.2 billion through tender offers and redemptions. The filing discloses two material weaknesses in internal control over financial reporting, one in risk assessment and one in accounting for supplier contracts, and the company states it did not maintain effective internal control as of December 28, 2019. It also describes an ongoing SEC investigation and USAO review related to procurement, several securities and ERISA class actions, and derivative suits. The company was not current in its periodic reporting in 2019, which limits its use of Form S-3. Fitch and S&P downgraded the company's long-term ratings to below investment grade on February 14, 2020, and Moody's affirmed its Baa3 rating with a negative outlook. The company is pursuing a strategic review of its enterprise strategy, and it plans to combine its EMEA, Latin America and APAC zones into an International segment in 2020. Goodwill impairments of $1.20 billion and intangible impairments of $702 million were recorded in 2019, and the filing warns of possible further impairments.
Feb 14, 2020
2018
Kraft Heinz Annual Report, Year Ended Dec 29, 2018
The Kraft Heinz Company's Form 10-K for fiscal year ended December 29, 2018 was filed late, after an internal investigation into its procurement area and a restatement of prior periods. The company restated its 2017 and 2016 financial statements and certain 2018 quarterly information to correct misstatements in the timing of supplier rebates, up-front payments, and related arrangements, which understated cost of products sold by $208 million in total. Management concluded that internal control over financial reporting was not effective as of December 29, 2018, citing multiple material weaknesses. The SEC's investigation is ongoing, and several securities class actions, an ERISA class action and stockholder derivative suits have been filed. Financially, net sales rose 0.7% to $26.3 billion in 2018, but the company recorded goodwill and intangible asset impairment losses of $15.9 billion, producing an operating loss of $10.2 billion and a net loss attributable to common shareholders of $10.2 billion, or $(8.36) per diluted share. Adjusted EBITDA declined 8.3% to $7.0 billion and Adjusted EPS was flat at $3.51. Cash from operations was $2.6 billion, and cash and cash equivalents stood at $1.1 billion at year end. Total long-term debt including the current portion was $31.1 billion. The company was not in compliance with certain reporting covenants under its Senior Credit Facility and indentures because of the filing delays. It obtained two waivers, and the filing of this 10-K satisfies the covenant requirement to furnish annual financial statements by June 28, 2019. The company also received a Nasdaq notice and has until September 11, 2019 to regain compliance with its periodic filing requirement, and it is not currently eligible to use Form S-3 or S-8.
Jun 7, 2019
2017
Kraft Heinz Annual Report, Year Ended Dec 30, 2017
The Kraft Heinz Company reported net sales of $26.2 billion for fiscal 2017 (52 weeks ended December 30, 2017), down 1.0% from $26.5 billion in 2016, driven by unfavorable volume/mix (1.5 pp) partly offset by higher pricing (0.5 pp). Operating income rose 10.3% to $6.8 billion, helped by lower Integration Program and restructuring expenses, Integration Program savings and lower overhead costs. Adjusted EBITDA increased 1.9% to $7.9 billion and Adjusted EPS rose 6.6% to $3.55. Reported diluted EPS was $8.95, inflated by a net tax benefit of approximately $7.0 billion from the U.S. Tax Reform, which reduced the effective tax rate to a 98.7% benefit. The company substantially completed its multi-year Integration Program, with cumulative pre-tax costs of $2,055 million against an expected total of approximately $2.1 billion, and cumulative pre-tax savings of approximately $1,725 million. Net cash provided by operating activities fell to $527 million from $2.6 billion, mainly due to a $1.2 billion pre-funding of postretirement benefit plans. Capital expenditures were $1,217 million, and the company expects 2018 capital expenditures of approximately $850 million. Total debt was $31.1 billion at year-end, with $2.5 billion of senior notes maturing in the third quarter of 2018 and a $4.0 billion undrawn revolving credit facility. The filing also disclosed a material weakness related to the misapplication of ASU 2016-15 in connection with restatements of the quarters ended April 1, 2017 and July 1, 2017, which management states has been remediated as of December 30, 2017. Sponsors 3G Capital and Berkshire Hathaway together own approximately 51% of common stock, and the Board declared a quarterly dividend of $0.625 per share on February 16, 2018.
Feb 16, 2018
2016
Kraft Heinz Annual Report, Year Ended Dec 31, 2016
The Kraft Heinz Company reported net sales of $26.49 billion for the 52 weeks ended December 31, 2016, up 44.4% from $18.34 billion in the 53-week 2015 period, primarily driven by the July 2, 2015 merger of Kraft Foods Group with Heinz. Operating income rose to $6.14 billion from $2.64 billion, and net income attributable to common shareholders was $3.45 billion, compared with a loss of $266 million in 2015. Diluted EPS was $2.81, and Adjusted EPS, a non-GAAP measure, was $3.33 versus $2.19 a year earlier. Adjusted EBITDA increased 15.4% to $7.78 billion. On an organic basis, the company's net sales rose 0.3% in 2016, with higher net pricing offset by neutral volume/mix, while pro forma net sales declined 3.5% due mainly to foreign currency. Integration Program and restructuring expenses totaled $1.0 billion in 2016, and the company expects $2.0 billion of pre-tax Integration Program costs and $1.7 billion of pre-tax savings by the end of 2017. Cash from operations was $5.24 billion, capital expenditures were $1.25 billion, and total assets were $120.48 billion, with long-term debt of $29.71 billion plus a current portion of $2.05 billion. Capital allocation included the June 2016 redemption of the $8.3 billion Series A Preferred Stock, funded largely by $5.0 billion and €1.8 billion of notes issued in May 2016, and common dividends declared of $2.35 per share for 2016. The filing also states that the Sponsors own approximately 51% of common stock and that the company disclosed a withdrawn proposal to combine with Unilever in February 2017.
Feb 23, 2017
2016
Kraft Heinz Annual Report, Year Ended Jan 3, 2016
Kraft Heinz completed its 2015 Merger with Kraft Foods Group, Inc. on July 2, 2015, with Heinz renamed The Kraft Heinz Company. The combined company reported net sales of $18.34 billion for the 53-week year ended January 3, 2016, up from $10.92 billion in the year ended December 28, 2014, with total assets of $122.97 billion. Operating income rose to $2.64 billion, but net loss attributable to common shareholders was $266 million, or $0.34 per diluted share, because of $1.3 billion in interest expense, a $9.00% Series A Preferred Stock dividend burden of $900 million, and higher tax and other expenses. Pro forma net sales declined 5.8% to $27.45 billion, with Pro Forma Organic Net Sales down 1.6%, driven by unfavorable volume/mix and foreign currency. Adjusted Pro Forma EPS rose 10.6% to $2.19. The company recorded $1.02 billion in integration and restructuring expenses and is executing a multi-year $1.9 billion Integration Program, which it expects to deliver $1.5 billion of pre-tax savings by 2017. Cash provided by operating activities was $2.47 billion, and capital expenditures were $648 million. Long-term debt rose to $25.15 billion, and the company paid $2.20 billion in dividends during the year, including $900 million to Series A Preferred holders and $1.30 billion on common stock. The company declared a quarterly common dividend of $0.575 per share, an annualized rate of $2.30. Investors should note the concentration of control: the Sponsors (Berkshire Hathaway and 3G Capital) own approximately 51% of common stock, and the company intends to refinance the Series A Preferred Stock in 2016. Goodwill of $43.05 billion and indefinite-lived intangibles of $55.82 billion make up a large share of assets, and the company identified these as subject to impairment risk. Wal-Mart Stores Inc. represented approximately 20% of net sales.
Mar 3, 2016