KHC 10-Q Quarterly Reports

Kraft Heinz Quarterly Report for Q3 Ended Sep 26, 2026

Kraft Heinz Quarterly Report for Q2 Ended Jun 27, 2026

Kraft Heinz reported a large second-quarter 2026 net loss driven by non-cash impairments. For the three months ended June 27, 2026, net sales were $6.26 billion versus $6.35 billion a year earlier, and operating loss was $6.43 billion, reflecting $2.44 billion of goodwill impairment losses and $4.91 billion of intangible asset impairment losses. Net loss attributable to common shareholders was $5.46 billion, or $(4.60) per diluted share, compared with $(6.60) a year earlier. Management's Adjusted Operating Income was $1.04 billion, down 18.4% from $1.28 billion, and Adjusted EPS was $0.56, down 18.8% from $0.69. Organic Net Sales declined 1.3%, with unfavorable volume/mix of 2.6 pp partly offset by higher pricing of 1.3 pp. The filing attributes the impairments to the market's perceived risk of achieving cash flow projections, and notes that updated expectations reflect increased marketing, sales and R&D investments. Several reporting units and brands were written down to zero excess fair value, and the company states that additional impairments are possible. Goodwill fell to $19.71 billion and indefinite-lived intangible assets to $29.15 billion from $34.17 billion at year-end 2025. Total equity declined to $36.12 billion from $41.78 billion. On the balance sheet and cash side, the company repaid $1.9 billion of senior notes maturing in June 2026, and completed a tender offer for $1.4 billion of its 2046 Notes, recognizing a $265 million gain on extinguishment of debt. Total debt was $19.0 billion at June 27, 2026 versus $21.2 billion at December 27, 2025. Operating cash flow was $2.09 billion for the six months, and the Board declared a $0.40 per share quarterly dividend payable September 25, 2026. The filing also states that work on the previously announced separation into two companies remains paused, and that the long-term debt ratings are BBB with a negative outlook from S&P and Fitch and Baa2 under review for downgrade from Moody's.

Kraft Heinz Quarterly Report for Q1 Ended Mar 28, 2026

Kraft Heinz reported first-quarter 2026 results for the three months ended March 28, 2026. Net sales rose 0.8% to $6.0 billion, including a favorable 1.9 pp currency impact, while Organic Net Sales decreased 0.4% to $5.9 billion, as higher pricing (0.8 pp) was more than offset by unfavorable volume/mix (1.2 pp). Operating income decreased 4.3% to $1.1 billion, and Adjusted Operating Income decreased 11.8% to $1.1 billion, driven by higher advertising expenses, manufacturing and logistics inflation that outpaced efficiency initiatives, and unfavorable volume/mix. Reported diluted EPS rose 13.6% to $0.67, helped by a lower effective tax rate of 20.9% and a non-cash $45 million benefit from settling the U.S. Retiree Life Insurance Plan, while Adjusted EPS fell 6.5% to $0.58. Cash generation improved, with operating cash flow of $1.0 billion versus $720 million a year earlier, driven mainly by working capital changes. Cash and cash equivalents rose to $3.3 billion at March 28, 2026. Total long-term debt including the current portion was $21.1 billion. The company expects to use proceeds from the sale of a significant portion of its available-for-sale debt securities to repay approximately $1.9 billion of senior notes maturing in June 2026. Management also declared a $0.40 per share dividend payable June 26, 2026, and made no share repurchases in the quarter. The Board has paused work on the previously announced separation into two independent public companies, and the quarter included $56 million of separation costs. The filing also discloses an unreserved IRS transfer pricing dispute with potential additional U.S. federal tax of roughly $200 million to $210 million per year for 2018 through 2022, plus penalties, and notes that Iran conflict-related inflation pressures are expected to increase through 2026. Goodwill and indefinite-lived intangible assets remain large at $22.2 billion and $34.1 billion respectively, with several reporting units and brands having limited headroom above carrying value.

Kraft Heinz Quarterly Report for Q3 Ended Sep 27, 2025

The Kraft Heinz Company's third-quarter 2025 Form 10-Q (quarter ended September 27, 2025) shows net sales of $6.24 billion, down 2.3% from $6.38 billion a year earlier, with Organic Net Sales down 2.5% driven by unfavorable volume/mix (3.5 pp) that more than offset higher pricing (1.0 pp). Reported results swung to operating income of $1.03 billion and net income of $613 million, versus an operating loss of $101 million and net loss of $290 million in the prior-year quarter, mainly because of much lower non-cash impairment losses. For the nine months, the company recorded a net loss of $6.50 billion after goodwill impairment losses of $6.73 billion and intangible asset impairment losses of $2.57 billion, while Adjusted Operating Income fell 9.9% to $3.58 billion and Adjusted EPS fell 13.5% to $1.92. Management attributes the margin pressure to commodity and manufacturing inflation outpacing efficiency gains, along with tariff-related cost increases and higher advertising expense. The company announced on September 2, 2025 a plan to separate into two publicly traded companies through a tax-free spin-off, expected to be completed in the second half of 2026. The two resulting companies are referred to as "Global Taste Elevation Co." and "North American Grocery Co." The separation remains subject to final board approval, favorable tax opinions, and SEC filings, and the company incurred $17 million of separation costs in the quarter. Liquidity remains solid, with cash and cash equivalents of $2.11 billion, marketable securities of $1.02 billion, and total debt (current plus long-term) of $21.2 billion at a carrying value. Operating cash flow was $3.09 billion for the nine months, and the company paid $1.42 billion in dividends. The filing also notes that the company now maintains six reporting units with goodwill of $22.2 billion and brands with $34.1 billion of indefinite-lived intangibles, several of which have limited headroom above carrying value, so further impairments remain a risk. The filing discloses an IRS transfer pricing matter covering 2018 through 2022, with proposed additional U.S. federal tax of roughly $200 million to $210 million per year, excluding interest and penalties, for which no reserve has been recorded because the company strongly disagrees with the IRS's positions.

Kraft Heinz Quarterly Report for Q2 Ended Jun 28, 2025

Kraft Heinz reported a sharply weaker second quarter ended June 28, 2025, driven by non-cash impairments. Net sales fell 1.9% to $6.4 billion for the quarter (Organic Net Sales down 2.0%), with unfavorable volume/mix (2.7 pp) more than offsetting higher pricing (0.7 pp). Operating income swung to a loss of $8.0 billion, versus income of $522 million a year earlier, as the company recorded $6.7 billion of goodwill impairment losses and $2.6 billion of intangible asset impairment losses after its interim test triggered by the sustained decline in share price and market capitalization. Net loss attributable to common shareholders was $7.8 billion, or $(6.60) per diluted share, compared with $102 million, or $0.08 per share, a year earlier. Adjusted EPS, a non-GAAP measure excluding impairments and other items, decreased 11.5% to $0.69, and Adjusted Operating Income decreased 7.5% to $1.3 billion. For the first half, net sales decreased 4.2% to $12.4 billion and Adjusted EPS decreased 10.9% to $1.31. Management cited increased commodity cost inflation, which more than offset efficiency initiatives, and unfavorable volume/mix, particularly in North America. Emerging Markets was the bright spot, with Segment Adjusted Operating Income up 52.3% in the quarter. Goodwill fell to $22.2 billion from $28.7 billion at year-end 2024, and the company warned that several reporting units and brands now have zero excess fair value and face a heightened risk of future impairments. On the balance sheet, cash and cash equivalents rose to $1.6 billion and the company held $997 million of marketable securities. Total debt including the current portion was $21.2 billion, and the company issued $1.6 billion of new notes in the first quarter. Dividends paid for the six months totaled $951 million, and a $0.40 quarterly dividend was declared for payment on September 26, 2025. The company also amended its $4.0 billion revolving credit facility on July 8, 2025, extending maturity to 2030 and lowering the minimum shareholders' equity covenant from $35 billion to $25 billion.

Kraft Heinz Quarterly Report for Q1 Ended Mar 29, 2025

The Kraft Heinz Company's first-quarter 2025 Form 10-Q (quarter ended March 29, 2025) shows net sales of $5.999 billion, down 6.4% from $6.411 billion a year earlier, with Organic Net Sales down 4.7% to $6.083 billion. The decline was driven primarily by unfavorable volume/mix (down 5.6 percentage points), which more than offset higher pricing (up 0.9 percentage points). Operating income fell 8.1% to $1.196 billion, net income fell 11.2% to $714 million, and diluted EPS fell 10.6% to $0.59 from $0.66. Adjusted EPS declined 10.1% to $0.62. The filing attributes the margin pressure to unfavorable volume/mix, increased procurement cost inflation, and a higher effective tax rate of 29.9% versus 21.9% a year earlier, partly offset by lower SG&A and higher pricing. Cash and balance sheet activity was notable. Operating cash flow was $720 million, versus $771 million in the prior-year period. The company issued $1.62 billion of new long-term debt (the 2025 Notes, including 600 million euros and $1.0 billion of U.S. dollar notes), and long-term debt including the current portion rose to $21.6 billion from $19.9 billion. Cash and cash equivalents increased to $2.113 billion, and the company bought $673 million of marketable securities. Management stated it expects 2025 capital expenditures of approximately $1.0 billion. The company repurchased 6.6 million shares during the quarter and had approximately $1.7 billion remaining under its $3.0 billion program. The filing flags several risks for investors. Goodwill of $28.8 billion and indefinite-lived brands of $36.5 billion carry heightened impairment risk, since several reporting units have 20% or less excess fair value over carrying amount. A planned North America reporting unit reorganization will require a transition impairment test in the third quarter of 2025. The company also disclosed an IRS transfer-pricing dispute with proposed additional U.S. federal tax of approximately $200 million for 2018 and $210 million for 2019, plus penalties of about $85 million for each year, which the company is contesting and for which it has recorded no reserves.

Kraft Heinz Quarterly Report for Q3 Ended Sep 28, 2024

The Kraft Heinz Company reported third-quarter 2024 net sales of $6.38 billion, down 2.8% from $6.57 billion a year earlier, with Organic Net Sales down 2.2%, driven mainly by unfavorable volume/mix (3.4 pp) that more than offset higher pricing (1.2 pp). The company posted a net loss of $290 million for the quarter, compared with net income of $254 million in the prior-year period, primarily because of non-cash impairment losses. Operating loss was $101 million, reflecting goodwill impairment losses of $707 million and intangible asset impairment losses of $721 million. For the nine months, net sales were $19.27 billion, down 2.6%, and net income was $614 million versus $2.09 billion a year earlier. Excluding impairments, the company's underlying profitability held up: Adjusted Operating Income rose 1.4% to $1.33 billion in the quarter and 1.7% to $3.98 billion for the nine months, and Adjusted EPS increased 4.2% to $0.75 for the quarter. Management attributed these gains to higher pricing, efficiency initiatives (primarily procurement), and lower variable compensation, partly offset by unfavorable volume/mix and higher manufacturing labor costs. Cash from operating activities was $2.80 billion for the nine months, versus $2.62 billion a year earlier, while the company paid $1.45 billion in dividends and repurchased $538 million of common stock. Investors should focus on the impairment charges, which totaled $2.28 billion for the nine months and reduced goodwill to $28.95 billion and intangible assets to $41.80 billion, and on continued volume declines in North America. The filing also discloses an IRS transfer-pricing dispute covering 2018 and 2019 with proposed additional U.S. tax of roughly $200 million and $210 million, which the company strongly contests and has not reserved for.

Kraft Heinz Quarterly Report for Q2 Ended Jun 29, 2024

Kraft Heinz reported a sharp drop in second-quarter 2024 profitability, driven mainly by a non-cash goodwill impairment. For the three months ended June 29, 2024, net sales fell 3.6% to $6.5 billion (from $6.7 billion), with Organic Net Sales down 2.4%, primarily due to unfavorable volume/mix (3.4 pp) that more than offset higher pricing (1.0 pp). Operating income fell 62.1% to $522 million, reflected an $854 million goodwill impairment tied to the Meat & Cheese (MC) reporting unit following the Q2 North America reorganization, and diluted EPS was $0.08 versus $0.81 a year earlier. Excluding impairments and other non-GAAP items, Adjusted Operating Income rose 2.0% to $1,380 million and Adjusted EPS declined 1.3% to $0.78. For the six months ended June 29, 2024, net sales decreased 2.4% to $12.9 billion and Organic Net Sales decreased 1.5%, while Adjusted Operating Income increased 1.9% to $2.6 billion. Operating cash flow rose to $1.71 billion from $1.58 billion, supported by working capital improvements in inventory and accounts payable, though capital expenditures and share repurchases ($537 million year to date) increased. Total debt carrying value was $19.9 billion, no commercial paper or Senior Credit Facility borrowings were outstanding, and the board declared a $0.40 per share quarterly dividend payable September 27, 2024. Investors should also note the uncertain tax exposure from IRS transfer pricing proposals (approximately $200 million for 2018 and $210 million for 2019 in additional tax, plus penalties of about $85 million each year, for which no reserves were recorded), the remaining goodwill and brand headroom sensitivity flagged by management, and an ongoing Clean Water Act matter in Kendallville, Indiana.

Kraft Heinz Quarterly Report for Q1 Ended Mar 30, 2024

Kraft Heinz reported net sales of $6.41 billion for the three months ended March 30, 2024, down 1.2% from $6.49 billion a year earlier. Organic Net Sales declined 0.5% to $6.4 billion, as higher pricing (2.7 pp) was more than offset by unfavorable volume/mix (3.2 pp). Operating income rose 4.7% to $1.30 billion, aided by higher pricing and commodity hedge gains. Net income attributable to common shareholders fell 4.2% to $801 million, and diluted EPS declined 2.9% to $0.66. Adjusted EPS rose 1.5% to $0.69, and Adjusted Operating Income increased 1.7% to $1.27 billion. Net income was pressured by an $80 million pre-tax loss on the sale of businesses (the Papua New Guinea Transaction), a $39 million derivative loss, and a higher effective tax rate of 21.9%. Cash generation improved, with operating cash flow of $771 million versus $486 million a year earlier, primarily from lower inventory outflows. Capital expenditures were $294 million, and the company expects 2024 capex of approximately $1.1 billion. The company issued 550 million euros of 3.500% senior notes due 2029 and reported long-term debt, including current portion, of $20.5 billion. Cash and cash equivalents were $1.6 billion, and the $4.0 billion Senior Credit Facility remained undrawn. Dividends paid totaled $486 million, repurchases of common stock were $329 million, and roughly $2.6 billion remained under the $3.0 billion repurchase authorization. The filing also flags risk items. The IRS has issued Notices of Proposed Adjustment on transfer pricing for 2018 and 2019, proposing roughly $200 million and $210 million in additional U.S. federal tax for those years, plus penalties of about $85 million each; the company has recorded no reserves and strongly disagrees. Goodwill and indefinite-lived intangible assets total $30.4 billion and $38.4 billion, several reporting units and brands have limited fair value headroom, and a North America interim impairment test is required in the second quarter of 2024 due to reorganization. Segment reporting also changed in the first quarter, with Emerging Markets Segment Adjusted Operating Income down 18.4% to $82 million.

Kraft Heinz Quarterly Report for Q3 Ended Sep 30, 2023

The Kraft Heinz Company reported third-quarter 2023 net sales of $6.57 billion, up 1.0% from $6.505 billion a year earlier, with Organic Net Sales up 1.7%, driven by higher pricing (7.1 pp) that more than offset unfavorable volume/mix (5.4 pp). Operating income fell 13.1% to $653 million, primarily due to higher non-cash impairment losses, including $510 million of goodwill impairments and $152 million of intangible asset impairments recorded in the quarter. Diluted EPS was $0.21 compared with $0.35 a year earlier, while Adjusted EPS rose 14.3% to $0.72 and Adjusted EBITDA rose 11.9% to $1.565 billion. For the nine months, net sales rose 3.5% to $19.78 billion, operating income rose 35.9% to $3.27 billion, and diluted EPS was $1.70 versus $1.19. The effective tax rate for the quarter was 44.7%, which was unfavorably affected by non-deductible goodwill impairments. The company also received two IRS Notices of Proposed Adjustment relating to transfer pricing for 2018 and 2019, which could result in additional U.S. federal tax of approximately $200 million for 2018 and $210 million for 2019, excluding interest, plus penalties of about $85 million each year. Kraft Heinz strongly disagrees with the IRS positions and has recorded no reserves for the matter. Cash and cash equivalents were $1.05 billion at quarter end, and operating cash flow for the nine months was $2.62 billion, versus $1.52 billion a year earlier. The company declared a $0.40 per share dividend payable December 29, 2023. The company also disclosed that following organizational changes announced on November 1, 2023, it will evaluate potential changes to its two reportable segments, with any change expected to be effective in early 2024. Its securities class action was finally approved and dismissed with prejudice on September 12, 2023, after the company paid its remaining liability.

Kraft Heinz Quarterly Report for Q3 Ended Jul 1, 2023

The Kraft Heinz Company's Form 10-Q for the quarter ended July 1, 2023 reports net sales of $6.72 billion for the three months, up 2.6% from $6.55 billion a year earlier, and $13.21 billion for the six months, up 4.9%. Organic Net Sales rose 4.0% for the quarter, driven by higher pricing (11.0 pp), which more than offset unfavorable volume/mix (7.0 pp). Operating income was $1.38 billion versus $542 million in the prior-year quarter, which included $630 million of impairment losses. Net income attributable to common shareholders was $1.00 billion, or $0.81 diluted EPS, compared with $265 million and $0.21 a year earlier. Adjusted EBITDA increased 6.0% to $1.61 billion, and Adjusted EPS increased 12.9% to $0.79. For the six months, net cash provided by operating activities was $1.58 billion versus $788 million a year earlier, and capital expenditures were $508 million. The company expects 2023 capital expenditures of approximately $1.1 billion. Cash and cash equivalents were $947 million at July 1, 2023, and total debt, including the current portion, was $20.0 billion. In May 2023 the company issued 600 million euros of floating rate senior notes due 2025. The Senior Credit Facility, a $4.0 billion revolver, was extended on July 21, 2023 to July 8, 2028. The Board declared a $0.40 per share dividend payable September 29, 2023. The filing also flags a potential tax exposure: in July 2023 the company received an IRS Notice of Proposed Adjustment relating to transfer pricing, proposing additional U.S. federal tax of approximately $200 million for 2018 and $210 million for 2019, excluding interest and penalties. The company disagrees, has recorded no reserves, and intends to contest the position. A consolidated securities class action has a preliminary settlement with a final hearing scheduled for September 12, 2023, and the company had recorded a net expense of $210 million in the fourth quarter of 2022 for it.

Kraft Heinz Quarterly Report for Q2 Ended Apr 1, 2023

Kraft Heinz Company reported first-quarter 2023 results for the three months ended April 1, 2023, with net sales of $6.49 billion, up 7.3% from $6.05 billion a year earlier. Organic Net Sales rose 9.4% to $6.57 billion, driven by higher pricing (14.7 pp), partially offset by unfavorable volume/mix (5.3 pp). Operating income increased 11.4% to $1.24 billion, and net income attributable to common shareholders rose 7.7% to $836 million, or diluted EPS of $0.68 versus $0.63. Adjusted EBITDA increased 10.3% to $1.48 billion and Adjusted EPS increased 13.3% to $0.68, with both North America and International contributing to growth in Segment Adjusted EBITDA. Cash flow from operations was $486 million, flat with the prior-year quarter, while capital expenditures were $266 million. Cash and cash equivalents were $826 million at April 1, 2023, and total long-term debt, including the current portion, was $20.1 billion. The company stated it had no commercial paper outstanding and no borrowings under its $4.0 billion Senior Credit Facility. Credit ratings were upgraded during late 2022 and early 2023, and the company expects 2023 capital expenditures of approximately $1.1 billion. The filing highlights ongoing inflation in commodity and supply chain costs, which management expects to remain elevated through 2023 before moderating in the second half. It also discloses an IRS examination of 2018 and 2019 transfer pricing, which management strongly disputes, and a securities class action that reached a preliminary settlement, with a $210 million net expense recorded in the fourth quarter of 2022.

Kraft Heinz Quarterly Report for Q3 Ended Sep 24, 2022

The Kraft Heinz Company's Form 10-Q for the quarter ended September 24, 2022 shows net sales of $6.5 billion for the third quarter, up 2.9% from $6.3 billion a year earlier, while Organic Net Sales rose 11.6% to $6.6 billion, driven primarily by higher pricing (15.4 pp) that more than offset unfavorable volume/mix (3.8 pp). Reported profitability weakened: operating income fell 35.0% to $751 million, driven by $220 million of goodwill impairment and $74 million of intangible asset impairment losses, along with higher supply chain and commodity costs. Diluted EPS was $0.35 versus $0.59, while Adjusted EPS declined 3.1% to $0.63 and Adjusted EBITDA decreased 5.5% to $1.4 billion. For the nine months, net sales declined 1.2% to $19.1 billion, but net income rose 15.8% to $1.5 billion, helped by lower interest expense after debt reduction. Cash generation and balance sheet items were mixed. Operating cash flow for the nine months was $1.5 billion versus $2.4 billion in the prior-year period, reflecting higher inventory outflows. Cash and cash equivalents fell to $997 million from $3,445 million at year-end 2021, and long-term debt including the current portion was $20.1 billion versus $21.8 billion. The company repurchased about $448 million of senior notes during the nine months and recorded total dividends paid of $1.5 billion. Management stated that a new $4.0 billion senior unsecured revolving credit facility maturing in July 2027 was entered into, that no amounts were drawn, and that the company was in compliance with all financial covenants. The filing also highlights ongoing asset-value pressure. Goodwill and indefinite-lived intangible impairments were recorded in 2022, with the Q3 2022 annual impairment test producing a $220 million goodwill charge for the CNAC reporting unit. Several reporting units and brands are flagged as having 20% or less excess fair value over carrying amount, signaling a heightened risk of future impairments. Management expects cost inflation to remain elevated into 2023.

Kraft Heinz Quarterly Report for Q2 Ended Jun 25, 2022

Kraft Heinz reported net sales of $6.55 billion for the three months ended June 25, 2022, down 0.9% from $6.62 billion a year earlier, while Organic Net Sales rose 10.1% to $6.60 billion, driven by higher pricing (12.4 pp) partially offset by unfavorable volume/mix (2.3 pp). Net income attributable to common shareholders was $265 million, or $0.21 diluted EPS, compared with a loss of $27 million a year earlier, but operating income fell 56.2% to $542 million because of $630 million of impairment losses in the quarter, including a $395 million intangible asset impairment on four brands (Maxwell House, Miracle Whip, Jet Puffed, and Classico) and a $235 million goodwill impairment. Adjusted EBITDA declined 10.9% to $1.52 billion and Adjusted EPS declined 10.3% to $0.70, as higher commodity and supply chain costs more than offset pricing and efficiency gains. For the six months, net sales decreased 3.2% to $12.6 billion, Organic Net Sales increased 8.5%, and diluted EPS rose to $0.84 from $0.43, while Adjusted EBITDA fell 12.9% to $2.86 billion. Operating cash flow dropped to $788 million from $2.03 billion, reflecting approximately $620 million of cash taxes paid on the Cheese Transaction, higher inventory build, and lower Adjusted EBITDA. Cash and cash equivalents fell to $1.52 billion from $3.45 billion at year-end 2021, and total debt carrying value was $20.9 billion, with the fair value of total debt at $19.8 billion. Subsequent to the quarter, on July 8, 2022, the company entered into a new five-year $4.0 billion senior unsecured revolving credit facility maturing July 8, 2027, replacing the existing facility. The filing states the company's long-term debt is rated BBB- by S&P and Fitch and Baa3 by Moody's, and the Board declared a $0.40 per share dividend payable September 23, 2022. Several shareholder lawsuits remain pending, and management states it cannot reasonably estimate the potential range of loss in the early-stage proceedings.

Kraft Heinz Quarterly Report for Q1 Ended Mar 26, 2022

The Kraft Heinz Company reported first-quarter 2022 net sales (ended March 26, 2022) of $6,045 million, down 5.5% from $6,394 million a year earlier. Organic Net Sales rose 6.8% to $6,081 million, driven by higher pricing (9.0 pp), which more than offset unfavorable volume/mix (2.2 pp). The decline in reported sales reflected unfavorable impacts from acquisitions and divestitures (11.2 pp) and foreign currency (1.1 pp), largely from the Nuts and Cheese Transactions. Net income attributable to common shareholders rose to $776 million from $563 million, and diluted EPS was $0.63 versus $0.46, but this improvement was driven mainly by lower interest expense, a $106 million debt extinguishment loss in the prior-year period, and lower impairment losses. Adjusted EBITDA decreased 15.1% to $1,342 million, and Adjusted EPS decreased 16.7% to $0.60, primarily due to higher commodity and supply chain costs and the unfavorable impact of divestitures. Cash flow from operations was $486 million, down from $810 million, reflecting lower Adjusted EBITDA and higher inventory outflows. Cash and cash equivalents were $2,978 million at quarter-end, and total long-term debt was $21.7 billion. The company paid $490 million in dividends and declared a $0.40 per share quarterly dividend payable June 24, 2022. Management expects 2022 capital expenditures of approximately $1.0 billion and notes cost inflation to remain elevated through at least the rest of 2022. The company also completed the Just Spices acquisition in the quarter and expects to pay about $620 million in cash taxes in the second quarter related to the Cheese Transaction. The filing also discloses ongoing securities class action and derivative litigation, for which the company states it cannot reasonably estimate the potential range of loss. S&P upgraded the company's long-term credit rating from BB+ to BBB- in March 2022.

Kraft Heinz Quarterly Report for Q3 Ended Sep 25, 2021

Kraft Heinz reported third-quarter 2021 net sales of $6.32 billion, down 1.8% from $6.44 billion a year earlier, though Organic Net Sales rose 1.3% to $6.26 billion on higher pricing. Operating income was $1.16 billion, roughly flat versus $1.15 billion, and net income attributable to common shareholders rose to $733 million from $597 million, with diluted EPS of $0.59 versus $0.49. Adjusted EBITDA fell 11.3% to $1.48 billion and Adjusted EPS fell 7.1% to $0.65. For the nine months, net sales were $19.33 billion, Organic Net Sales rose 0.5%, and net income swung to $1.28 billion from a loss of $673 million, largely because the prior-year period carried $3.4 billion of non-cash impairment losses versus $343 million in 2021. The balance sheet and capital structure changed materially. Long-term debt fell to $22.94 billion from $28.07 billion, supported by the Nuts Transaction with Hormel Foods for approximately $3.4 billion, which closed in the second quarter. The company used those proceeds and cash on hand for tender offers, redemptions and open-market repurchases, recording debt extinguishment costs of $571 million in the nine months. Cash and cash equivalents were $2.27 billion at September 25, 2021. Management expects inflation to remain elevated through the remainder of 2021 and into at least the first half of 2022, with high-single-digit gross cost inflation as a percentage of cost of products sold in the second half. Pending items include the Cheese Transaction with Lactalis for approximately $3.34 billion in total consideration, expected to close in the fourth quarter of 2021. The filing indicates that closing would trigger an indefinite-lived intangible asset impairment of approximately $1.25 billion on the Kraft and Velveeta brands. The company also settled the SEC investigation for a $62 million civil penalty, and securities class action and derivative litigation remain pending.

Kraft Heinz Quarterly Report for Q2 Ended Jun 26, 2021

The Kraft Heinz Company's second-quarter 2021 Form 10-Q (quarter ended June 26, 2021) shows net sales of $6.6 billion for the three months, down 0.5% from $6.6 billion a year earlier, and $13.0 billion for the six months, up 1.6%. Organic Net Sales fell 2.1% in the quarter on unfavorable volume/mix (3.6 pp) that more than offset higher pricing (1.5 pp). Net loss for the quarter was $25 million, compared with a $1.65 billion loss attributable to common shareholders in the prior-year quarter, mainly because goodwill and intangible impairment losses fell sharply (impairment losses of $113 million versus $2.9 billion). For the six months, net income was $543 million and diluted EPS was $0.43. Adjusted EBITDA was $1.7 billion for the quarter, down 5.2%, and Adjusted EPS was $0.78, down 2.5%. Debt and portfolio actions dominated the period. The Nuts Transaction with Hormel Foods closed in the second quarter, bringing about $3.4 billion of cash proceeds, with roughly $700 million of cash taxes expected in the second half of 2021. The company used these proceeds and cash on hand to reduce long-term debt through tender offers, a redemption, and open-market repurchases; total long-term debt, including the current portion, fell to $25.1 billion from $28.3 billion at year-end 2020. The pending Cheese Transaction with an affiliate of Groupe Lactalis, with about $3.2 billion of cash consideration, is expected to close in the second half of 2021. The filing also discloses a second-quarter accrual related to the SEC investigation, with the amount not stated, and states that the company does not expect the pending legal matters to have a material adverse effect. The balance sheet at June 26, 2021 showed cash of $3.9 billion, total assets of $97.0 billion, and total equity of $50.1 billion. Dividends of $0.40 per share were declared in each quarter, and the company paid $979 million in dividends in the first half. Management says cash from operations and the Senior Credit Facility should cover its needs for the next 12 months.

Kraft Heinz Quarterly Report for Q1 Ended Mar 27, 2021

Kraft Heinz reported first-quarter 2021 results for the three months ended March 27, 2021. Net sales rose 3.9% to $6.4 billion, and Organic Net Sales increased 2.5% to $6.3 billion, driven by higher pricing (1.5 pp) and favorable volume/mix (1.0 pp). Operating income increased 41.3% to $1.1 billion, net income rose 49.0% to $568 million, and diluted EPS was $0.46 versus $0.31. Adjusted EBITDA grew 11.6% to $1.6 billion, and Adjusted EPS increased 24.1% to $0.72. The results were helped by unrealized gains on commodity hedges, while interest expense rose to $415 million, including a $106 million loss on extinguishment of debt from the Tender Offer. The balance sheet reflects pending portfolio changes. Assets held for sale totaled $5.26 billion, primarily for the Nuts Transaction with Hormel Foods (approximately $3.4 billion, expected to close in the second quarter of 2021) and the Cheese Transaction with Lactalis (approximately $3.3 billion total consideration, expected to close in the second half of 2021). Goodwill declined to $31.4 billion from $33.1 billion, partly from $1.7 billion of goodwill reclassified to held for sale and a $230 million goodwill impairment tied to the Nuts Transaction. Cash and cash equivalents fell to $2.36 billion, and long-term debt decreased to $27.07 billion from $28.07 billion. Operating cash flow was $810 million compared with $212 million a year earlier, and the company expects 2021 capital expenditures of approximately $900 million. The filing also discloses ongoing legal and regulatory matters. A consolidated securities class action, an ERISA class action, and stockholder derivative suits remain pending, and the company cannot reasonably estimate the potential range of loss in these early-stage proceedings. The company is in discussions with the SEC regarding the potential resolution of its investigation, which began with a subpoena received in October 2018. The Senior Credit Facility was extended to July 6, 2025 for $4.0 billion, and the quarterly dividend of $0.40 per share was declared on April 29, 2021.

Kraft Heinz Quarterly Report for Q3 Ended Sep 26, 2020

Kraft Heinz reported third-quarter 2020 results for the period ended September 26, 2020, with net sales rising 6.0% to $6.4 billion and Organic Net Sales rising 6.3%, driven by higher pricing (3.7 pp) and favorable volume/mix (2.6 pp). Growth was attributed mainly to continued at-home consumption during the COVID-19 pandemic, partly offset by weakness in foodservice. Net income attributable to common shareholders fell 33.7% to $597 million, and diluted EPS was $0.49. Adjusted EBITDA rose 13.5% to $1.7 billion and Adjusted EPS rose 1.4% to $0.70. Operating income declined 2.8% to $1.1 billion, largely due to a $300 million non-cash goodwill impairment tied to the cheese business sale. For the nine months, the company posted a net loss attributable to common shareholders of $676 million, compared with net income of $1.8 billion a year earlier, reflecting $3.4 billion of non-cash impairment losses, including $2.3 billion of goodwill and $1.1 billion of intangible asset impairments. Adjusted EBITDA grew 8.5% to $4.9 billion and Adjusted EPS fell 1.9% to $2.09. Operating cash flow was $3.3 billion, versus $2.0 billion in the prior-year period. Cash and cash equivalents were $2.7 billion at quarter end. The most significant strategic event was the September 2020 agreement to sell certain global cheese assets to an affiliate of Groupe Lactalis for total consideration of about $3.3 billion, including about $3.2 billion in cash, with closing expected in the first half of 2021. The company expects to use post-tax proceeds primarily to repay long-term debt. The filing also discloses an SEC investigation related to procurement and a consolidated securities class action, and states that the company cannot reasonably estimate the potential range of loss in those matters.

Kraft Heinz Quarterly Report for Q2 Ended Jun 27, 2020

The Kraft Heinz Company reported a second-quarter 2020 net loss attributable to common shareholders of $1,651 million, or $(1.35) per diluted share, compared with net income of $449 million, or $0.37 per diluted share, in the prior-year quarter. The loss was driven by non-cash impairment losses of $2,873 million in the quarter, including $1,817 million of goodwill impairments and $1,056 million of intangible asset impairments, tied to the completion of the company's enterprise strategy and five-year operating plan. Net sales rose 3.8% to $6,648 million, and Organic Net Sales rose 7.4%, which the company attributed mainly to strong retail demand supported by consumer reaction to the COVID-19 pandemic, while foodservice declined. Adjusted EBITDA increased 12.4% to $1,799 million and Adjusted EPS rose 2.6% to $0.80. For the six months, net sales were $12,805 million, up 3.6%, and the company reported an operating loss of $569 million. Liquidity remained solid: cash and cash equivalents were $2,812 million at June 27, 2020, and net cash from operating activities was $2,216 million for the six months. The company drew its full $4.0 billion Senior Credit Facility in March as a precaution, repaid it in the second quarter, and completed a tender offer and debt redemptions funded by $3.5 billion of new senior notes. Total debt carrying value fell to $28.9 billion from $29.2 billion at year-end 2019. Goodwill fell to $33,310 million and indefinite-lived intangibles to $42,111 million after impairments. The company also faces an ongoing SEC investigation related to its procurement area and securities class and derivative litigation, and it declared a $0.40 per share quarterly dividend on July 30, 2020.

Kraft Heinz Quarterly Report for Q1 Ended Mar 28, 2020

Kraft Heinz reported first-quarter 2020 net sales of $6.16 billion, up 3.3% from $5.96 billion a year earlier, with Organic Net Sales up 6.2% to $6.21 billion. The company attributed the growth to increased consumer demand related to the COVID-19 pandemic, which drove favorable volume/mix (4.6 pp) and higher pricing (1.6 pp), partially offset by a decline in foodservice. Operating income rose 37.1% to $770 million, mainly because goodwill impairment losses fell to $226 million from $620 million. Net income attributable to common shareholders fell 6.7% to $378 million, and diluted EPS was $0.31 versus $0.33, driven by unfavorable other expense/(income) and a $143 million unrealized loss on commodity hedges. Adjusted EBITDA was $1.42 billion, down 1.1%, and Adjusted EPS was $0.58, down 12.1%. The balance sheet shifted materially during the quarter. Kraft Heinz drew the full $4.0 billion on its Senior Credit Facility as a precautionary measure tied to COVID-19 uncertainty, lifting cash and cash equivalents to $5.40 billion from $2.28 billion. Long-term debt rose to $31.53 billion, and total debt carrying value reached $32.8 billion. Operating cash flow was $212 million versus $304 million a year earlier, mainly due to higher trade receivables and collateral postings for commodity derivative margin requirements. Fitch and S&P downgraded the company's long-term credit rating to BB+ on February 14, 2020, and the company is restricted from issuing commercial paper while the facility is fully drawn. The filing also discloses governance and control matters. Management concluded that a material weakness in risk assessment has not been remediated, while a previously reported material weakness over supplier contracts was deemed remediated as of March 28, 2020. The company faces several securities class actions, ERISA and derivative lawsuits, and an ongoing SEC investigation and USAO review related to procurement, and it has not estimated a range of loss. The Board declared a $0.40 per share dividend payable June 26, 2020.

Kraft Heinz Quarterly Report for Q3 Ended Sep 28, 2019

The Kraft Heinz Company's Form 10-Q for the quarter ended September 28, 2019 reports net sales of $6.08 billion for the three months, down 4.8% from $6.38 billion a year earlier, and $18.44 billion for the nine months, also down 4.8%. Organic Net Sales fell 1.1% for the quarter and 1.5% for the nine months. Operating income rose 9.8% in the quarter to $1.18 billion, driven by lower impairment losses, while nine-month operating income fell 37.0% to $2.48 billion because of $1.22 billion in impairment losses, including $744 million of goodwill impairment. Net income attributable to common shareholders was $899 million for the quarter (up 45.4%, helped by a $241 million gain on the Canada Natural Cheese Transaction) and $1.75 billion for the nine months (down 26.2%). Diluted EPS was $0.74 for the quarter and $1.43 for the nine months; Adjusted EPS was $0.69 for the quarter, down 9.2%. The filing restates the three- and nine-month periods ended September 29, 2018 to correct supplier rebate timing, capital lease classification, and other misstatements identified in an internal procurement investigation prompted by an SEC subpoena. The company discloses material weaknesses in internal control over financial reporting, and its disclosure controls were concluded to be not effective as of September 28, 2019. The company faces three securities class actions, an ERISA class action, several stockholder derivative suits, and an ongoing SEC investigation, and states it cannot reasonably estimate the potential range of loss for the private suits. Liquidity remained substantial, with $2.3 billion of cash and cash equivalents, $30.7 billion of long-term debt including current portion, and a $4.0 billion undrawn Senior Credit Facility. Operating cash flow was $1.99 billion for the nine months, up from $878 million, and the company repurchased $2.9 billion of senior notes through tender offers funded by $3.0 billion of new 2019 notes. The Board declared a $0.40 per share quarterly dividend on October 31, 2019.

Kraft Heinz Quarterly Report for Q1 Ended Mar 30, 2019

The Kraft Heinz Company's Form 10-Q for the quarter ended March 30, 2019 reports net sales of $5.96 billion, down 5.5% from $6.30 billion a year earlier, with Organic Net Sales down 2.8% to $6.02 billion, driven mainly by lower pricing (2.4 pp) and unfavorable volume/mix (0.4 pp). Operating income fell 62.5% to $562 million, reflecting $620 million of goodwill impairment losses recorded in the quarter. Net income attributable to common shareholders decreased 59.6% to $405 million, or $0.33 diluted EPS, while Adjusted EBITDA declined 20.8% to $1.43 billion and Adjusted EPS fell 26.7% to $0.66. Net cash from operating activities was $304 million, versus $408 million a year earlier, and the Heinz India divestiture generated a $246 million pre-tax gain. The filing is heavily shaped by a restatement. An internal investigation into the procurement function, prompted by an SEC subpoena received in October 2018, led the company to restate its March 31, 2018 quarter (cost of products sold reduced by $19 million, net income increased by $10 million to $1.00 billion). The company reports material weaknesses in internal control over financial reporting, disclosure controls were concluded to be not effective as of March 30, 2019, and the company was not in compliance with certain reporting covenants until it obtained waivers under its Senior Credit Facility. Multiple securities class actions and derivative suits have been filed, and the SEC investigation is ongoing. The filing states the company cannot reasonably estimate the potential range of loss from these lawsuits. Balance sheet and portfolio actions include goodwill impairments of $286 million in EMEA East, $205 million in Brazil, and $129 million in Latin America Exports, and a pending Canada Natural Cheese divestiture to Parmalat for approximately 1.6 billion Canadian dollars. The filing also notes that the company expects to record further non-cash impairments of $118 million on goodwill for U.S. Refrigerated and $474 million on brands in the second quarter of 2019, and that 2019 capital expenditures are expected to be approximately $800 million.

Kraft Heinz Quarterly Report for Q2 Ended Jun 29, 2019

The Kraft Heinz Company reported net sales of $6.41 billion for the three months ended June 29, 2019, down 4.2% from $6.69 billion a year earlier, with Organic Net Sales down 0.3%. Net income attributable to common shareholders was $449 million, or $0.37 diluted EPS, versus $754 million ($0.62) a year earlier, as impairment losses of $598 million in the quarter weighed on operating income, which fell 45.9% to $734 million. For the six months, net sales were $12.37 billion (down 4.8%) and diluted EPS was $0.70 versus $1.43. Adjusted EBITDA fell 17.9% to $1.6 billion for the quarter and 19.3% to $3.0 billion for the six months, and Adjusted EPS fell 21.2% to $0.78 for the quarter. The filing is the company's first 10-Q since it became current in its SEC reporting obligations. It restates the June 30, 2018 quarter and six months, tied to an internal investigation of procurement practices following an SEC subpoena, and it discloses that management identified material weaknesses in internal control over financial reporting, with disclosure controls concluded not effective as of June 29, 2019. Goodwill impairment losses of $744 million and intangible asset impairment losses of $474 million were recognized in the first half of 2019, including a $118 million goodwill charge and $474 million of brand impairments in the second quarter. The company also faces three securities class actions, derivative suits and an SEC investigation, and it obtained waivers under its Senior Credit Facility for late reporting, which the filing states were satisfied by this 10-Q. Cash flow from operations was $1.3 billion for the six months, up from $216 million, and the company paid $976 million in common dividends. Results were supported by a $246 million pre-tax gain on the Heinz India divestiture, which closed January 30, 2019, while a Canada natural cheese sale to Parmalat was pending, with a gain expected in the third quarter of 2019.

Kraft Heinz Quarterly Report for Q3 Ended Sep 29, 2018

The Kraft Heinz Company's Form 10-Q for the quarter ended September 29, 2018 shows modest top-line growth but sharply lower profitability in the period. Net sales rose 1.6% to $6.4 billion for the three months and 0.7% to $19.4 billion for the nine months, while operating income fell 30.4% to $1.07 billion for the quarter and 15.9% to $3.88 billion for the nine months. The decline was driven by higher impairment charges ($234 million in the quarter; $499 million for the nine months), higher strategic investments, overhead and input costs. Diluted EPS was $0.51 for the quarter versus $0.77 a year earlier, and Adjusted EPS was $0.78 versus $0.83, down 6.0%. Balance sheet and cash flow data show a larger debt load and reduced liquidity. Long-term debt rose to $30.998 billion from $28.333 billion at year-end 2017, following $3.0 billion of new senior notes issued in June 2018 used partly to unwind the U.S. securitization program and repay $2.7 billion of maturing notes. Cash and cash equivalents were $1.366 billion, and net cash from operating activities was $899 million for the nine months, versus $16 million a year earlier. Dividends paid totaled $2.4 billion for the nine months. Goodwill and intangible assets remain large, at $44.3 billion and $58.7 billion, and the company recorded a $215 million impairment on the Smart Ones brand in the third quarter. Other items include the Cerebos acquisition for approximately $244 million, and an agreement signed October 24, 2018 to sell Heinz India for approximately $625 million, with closing expected in early 2019. Venezuelan currency devaluation losses were $64 million in the quarter and $131 million for the nine months, and the company expects 2018 capital expenditures of approximately $850 million.

Kraft Heinz Quarterly Report for Q2 Ended Jun 30, 2018

The Kraft Heinz Company's Form 10-Q for the quarter ended June 30, 2018 reports net sales of $6,686 million for the three months, up 0.7% from $6,637 million, while Organic Net Sales decreased 0.4% due to unfavorable volume/mix (1.7 pp) partially offset by higher pricing (1.3 pp). Operating income fell 19.1% to $1,329 million, driven by higher impairment charges ($265 million in the quarter), higher input costs and strategic investments. Net income attributable to common shareholders declined 34.8% to $756 million, and diluted EPS was $0.62 versus $0.94, while Adjusted EPS rose 2.0% to $1.00 on lower adjusted taxes. Adjusted EBITDA decreased 4.4% to $1,974 million. For the six months, net sales rose 0.2% to $12,990 million, Organic Net Sales fell 0.9%, operating income declined 8.7% to $2,810 million, and diluted EPS was $1.43 versus $1.67. Adjusted EPS increased 3.8% to $1.89. Cash from operations improved to $229 million from a use of $178 million, helped by a federal tax refund, while the company issued $3.0 billion of senior notes in June 2018 and unwound its U.S. securitization program. Long-term debt including the current portion was $34.1 billion at June 30, 2018, and cash and cash equivalents were $3,369 million. The filing also discloses the $168 million goodwill impairment in Australia and New Zealand, the $101 million Quero brand impairment in Brazil, the Cerebos acquisition for approximately $238 million on March 9, 2018, and a declared quarterly dividend of $0.625 per share payable September 14, 2018.

Kraft Heinz Quarterly Report for Q1 Ended Mar 31, 2018

The Kraft Heinz Company reported net sales of $6.30 billion for the three months ended March 31, 2018, down 0.3% from $6.32 billion a year earlier. Organic Net Sales decreased 1.5%, driven by unfavorable volume/mix (2.5 pp) partially offset by higher pricing (1.0 pp). Operating income rose 3.4% to $1.48 billion, and net income attributable to common shareholders increased 11.1% to $993 million, or $0.81 diluted EPS (up 11.0%). Adjusted EBITDA declined 2.6% to $1.80 billion and Adjusted EPS rose 6.0% to $0.89. The company cited lower volume/mix, higher input costs and strategic investments as headwinds, while savings from the Integration Program, higher pricing and a lower effective tax rate of 20.8% (versus 28.7%) supported results, largely due to U.S. Tax Reform. Cash flow improved sharply, with net cash provided by operating activities of $413 million versus a $615 million use a year earlier, reflecting better trade receivables collections and a federal tax refund. Cash and cash equivalents rose to $1.79 billion. Total debt carrying value was $32.3 billion at March 31, 2018, with commercial paper outstanding of $965 million and no drawings on the $4.0 billion Senior Credit Facility. Dividends paid were $897 million for the quarter, and the Board declared a $0.625 per share dividend on May 2, 2018. The company also closed the acquisition of Cerebos Pacific Limited on March 9, 2018 for approximately $238 million, with results to be recorded from the second quarter. The filing notes that the Integration Program is substantially complete, with about $30 million of additional costs expected mainly in the second quarter of 2018. Total integration and restructuring expenses were $90 million for the quarter. Goodwill and indefinite-lived intangible assets totaled $44.8 billion and $53.8 billion, respectively, and management stated no impairment indicators arose in the period. Venezuelan operations produced a $47 million nonmonetary currency devaluation loss in the quarter.

Kraft Heinz Quarterly Report for Q3 Ended Sep 30, 2017

The Kraft Heinz Company's third-quarter 2017 Form 10-Q reports net sales of $6.31 billion for the three months ended September 30, 2017, up 0.7% from $6.27 billion a year earlier, with Organic Net Sales up 0.3%. Operating income rose 17.6% to $1.66 billion and diluted EPS increased 11.6% to $0.77. Adjusted EPS was flat at $0.83, and Adjusted EBITDA rose 7.0% to $1.93 billion. For the nine months, net sales declined 1.4% to $19.36 billion, while operating income increased 12.5% to $5.13 billion and diluted EPS rose 19.0% to $2.44. Net cash provided by operating activities was only $16 million for the nine months, compared with $1.02 billion a year earlier, a decline the filing attributes to lower collections on receivables as more were non-cash exchanged for sold receivables and to the timing of tax, promotional, bonus and interest payments. The filing also discloses a restatement. On November 6, 2017, the company restated its financial statements for the quarters ended April 1, 2017 and July 1, 2017 to reclassify cash receipts on sold receivables from operating to investing activities. Management concluded that disclosure controls and internal control over financial reporting were not effective as of September 30, 2017 due to a material weakness related to the adoption of new accounting standards, and remediation is planned during fiscal 2017 with operating effectiveness to be tested. Balance sheet and capital items include total debt carrying value of $31.5 billion against a fair value of $32.9 billion, cash and cash equivalents of $1.44 billion, and total equity of $58.97 billion. The company repaid about $2.0 billion of senior notes and a $600 million term loan, and issued $1.5 billion of floating rate notes. The Board declared a $0.625 per share quarterly dividend on November 1, 2017. The Integration Program has cumulative pre-tax costs of approximately $1.9 billion against an expected total of $2.1 billion, with cumulative pre-tax savings of approximately $1,575 million.

Kraft Heinz Quarterly Report (Amendment) for Q2 Ended Apr 1, 2017

The Kraft Heinz Company's quarterly report for the period ended April 1, 2017 shows net sales of $6.36 billion, down 3.1% from $6.57 billion a year earlier. Organic Net Sales fell 2.7%, driven by unfavorable volume/mix (down 3.7 percentage points) that was partly offset by higher pricing (up 1.0 percentage point). Operating income rose 2.5% to $1.55 billion, mainly because of lower Integration Program and restructuring expenses. Net income attributable to common shareholders was $893 million, down 0.3%, and diluted EPS was flat at $0.73. Adjusted EPS rose 15.1% to $0.84, and Adjusted EBITDA fell 3.4% to $1.89 billion, primarily due to unfavorable volume/mix and currency. The filing restates the cash flow statements to correct the classification of cash receipts on sold receivables, which moved from operating to investing activities under ASU 2016-15. Net cash used for operating activities is now $615 million, compared with $151 million as originally reported, and net cash provided by investing activities is now $134 million, compared with a $330 million outflow as originally reported. Management concluded that disclosure controls were not effective as of April 1, 2017 because of a material weakness in controls over the adoption of new accounting standards. Management expects remediation steps to be in place during 2017. Balance sheet and capital items include cash and cash equivalents of $3.24 billion, long-term debt including the current portion of $31.8 billion, and a Board-declared quarterly dividend of $0.60 per share. The Integration Program has incurred approximately $1.8 billion of cumulative costs against an expected $2.0 billion, and cumulative pre-tax savings of approximately $1,270 million against an expected $1.7 billion for 2017.

Kraft Heinz Quarterly Report (Amendment) for Q3 Ended Jul 1, 2017

The Kraft Heinz Company reported net sales of $6.68 billion for the three months ended July 1, 2017, down 1.7% from the prior year, and $13.04 billion for the six months, down 2.4%. Organic Net Sales decreased 0.9% in the quarter and 1.8% for the six months, driven by unfavorable volume/mix and, in the quarter, lower pricing. Profitability improved on a reported basis: operating income rose 17.5% to $1.92 billion in the quarter, and diluted EPS was $0.94, up 49.2%. The filing attributes the gains mainly to lower Integration Program and other restructuring expenses. Adjusted EBITDA rose 0.7% to $2.10 billion in the quarter but fell 1.3% to $3.99 billion for the six months, and Adjusted EPS rose 15.3% to $0.98 in the quarter. Management attributes the Adjusted EBITDA gains to Integration Program savings, offset by higher input costs and lower Organic Net Sales. The filing restates the unaudited financial statements to correct a misclassification of cash receipts on sold receivables under ASU 2016-15, which moved these receipts from operating to investing activities. As restated, net cash used for operating activities was $178 million for the six months, compared with $891 million of cash provided as originally reported for the same period. Net cash provided by investing activities was $423 million as restated, versus $646 million of cash used as originally reported. Management concluded that disclosure controls were not effective as of July 1, 2017 because of a material weakness in controls over the adoption of new accounting standards. Liquidity remained substantial, with cash and cash equivalents of $1.45 billion, long-term debt of $30.0 billion including the current portion, and commercial paper of $1.1 billion at quarter end. The Integration Program remains a major driver of results. The company expects pre-tax costs of $2.0 billion, has incurred approximately $1.8 billion cumulatively, and expects $1.7 billion of pre-tax savings by the end of 2017, with cumulative savings to date of approximately $1,450 million. A $168 million postretirement curtailment gain in the second quarter more than offset other Integration Program expenses for the period. The Board declared a quarterly dividend of $0.625 per share on August 3, 2017, payable September 15, 2017.

Kraft Heinz Quarterly Report for Q3 Ended Jul 1, 2017

The Kraft Heinz Company's second-quarter 2017 Form 10-Q reports net sales of $6.68 billion for the three months ended July 1, 2017, down 1.7% from $6.79 billion a year earlier, with Organic Net Sales down 0.9%. Operating income rose 17.5% to $1.92 billion, and net income attributable to common shareholders rose 50.5% to $1.16 billion, helped by lower Integration Program and restructuring expenses and the absence of the Series A Preferred Stock dividend. Diluted EPS was $0.94 versus $0.63, and non-GAAP Adjusted EPS was $0.98 versus $0.85. For the six months, net sales fell 2.4% to $13.04 billion, and operating cash flow fell to $891 million from $2.10 billion, driven by timing of customer promotion payments, taxes and bonuses, and higher inventory costs. The balance sheet shows total debt-related obligations of $30.0 billion in long-term debt, including current portion, after repaying about $2.0 billion of senior notes that matured in the quarter. Cash and cash equivalents fell to $1.45 billion from $4.20 billion at year-end 2016. Goodwill was $44.6 billion and indefinite-lived intangible assets were $53.5 billion, and management noted only limited headroom in fair value versus carrying value for many of these assets. The Integration Program, now expected to cost $2.0 billion pre-tax with about $1.8 billion incurred to date, continued to drive restructuring activity, and the company reported a $168 million curtailment gain from postretirement remeasurements in the quarter. The Board declared a quarterly dividend of $0.625 per share on August 3, 2017. Management stated that its liquidity sources are sufficient to meet working capital needs, Integration Program spending, capital expenditures of about $1.2 billion for 2017, and dividends. The filing also notes a Venezuelan currency devaluation loss of $25 million for the quarter and a CFTC complaint against Mondelez International and Kraft, which management does not expect to have a material adverse effect.

Kraft Heinz Quarterly Report for Q2 Ended Apr 1, 2017

Kraft Heinz reported first-quarter 2017 net sales of $6.4 billion, down 3.1% from $6.6 billion a year earlier, with Organic Net Sales down 2.7% driven by unfavorable volume/mix of 3.7 percentage points, partly offset by 1.0 point of higher pricing. Operating income rose 2.5% to $1.55 billion, primarily because Integration Program and other restructuring expenses fell to $148 million from $260 million. Net income attributable to common shareholders was $893 million, roughly flat versus $896 million, as interest expense rose to $313 million from $249 million. Diluted EPS was $0.73 in both periods, while Adjusted EPS, a non-GAAP measure, rose 15.1% to $0.84, reflecting the absence of a Series A Preferred Stock dividend in the current period. Adjusted EBITDA declined 3.4% to $1.89 billion. Volume/mix weakness was concentrated in the United States and Canada, where Canada net sales fell 12.2% and Canada volume/mix was down 13.9 percentage points. Europe and Rest of World showed mixed results, with Rest of World organic net sales up 8.1%. Cash flow was weaker: operating cash flow was negative $151 million versus $270 million a year earlier, driven by receivables and inventory build, including a reduction in the U.S. securitization program from $800 million to $500 million. Cash and cash equivalents fell to $3.24 billion from $4.20 billion at year-end 2016. The balance sheet shows total assets of $120.8 billion, including $44.3 billion of goodwill and $59.3 billion of intangible assets, against total debt with a carrying value of $32.7 billion. The company paid $736 million in common dividends and declared a $0.60 per share dividend payable June 16, 2017. Approximately $2.0 billion of senior notes mature in June 2017, which the company expects to fund primarily with cash, operating cash flow, and its securitization and commercial paper programs. The company expects $1.7 billion of pre-tax savings from the Integration Program by the end of 2017.

Kraft Heinz Quarterly Report for Q3 Ended Oct 2, 2016

The Kraft Heinz Company's Form 10-Q for the quarter ended October 2, 2016 reports net sales of $6.27 billion for the three months, up 2.4% from $6.12 billion a year earlier, primarily driven by the 2015 Merger. On a pro forma basis, net sales decreased 1.5%, with Organic Net Sales down 1.0%, reflecting lower pricing from commodity deflation and unfavorable volume/mix in the United States. Operating income rose to $1.41 billion from $399 million, and diluted EPS was $0.69 versus a loss of $0.27 in the prior-year quarter. Non-GAAP Adjusted EPS increased 88.6% to $0.83, and Adjusted EBITDA rose 21.7% to $1.8 billion, driven by Integration Program savings and favorable pricing net of commodity costs. For the nine months, net sales were $19.6 billion, and diluted EPS was $2.05. Operating cash flow was $2.9 billion, versus $746 million a year earlier. The company redeemed its 9.00% Series A Preferred Stock for $8.3 billion in June 2016, funded mainly by $5.0 billion of U.S. Dollar Notes and roughly €1.8 billion of Euro Notes. Long-term debt, including the current portion, rose to $32.0 billion from $25.2 billion at January 3, 2016. Goodwill of $44.5 billion and indefinite-lived intangibles of $53.5 billion remain large relative to total assets of $121.1 billion, and the filing notes there is not a significant excess of fair value over carrying value for these assets. The Integration Program now carries an expected pre-tax cost of $1.9 billion, with cumulative costs of approximately $1.6 billion incurred through October 2, 2016, and it is expected to deliver $1.5 billion of pre-tax savings by 2017, with approximately $990 million achieved to date. Management also declared a quarterly dividend of $0.60 per share on November 3, 2016.

Kraft Heinz Quarterly Report for Q3 Ended Jul 3, 2016

The Kraft Heinz Company reported net sales of $6.79 billion for the three months ended July 3, 2016, up from $2.62 billion in the prior-year quarter, primarily driven by the 2015 Merger. On a pro forma basis, net sales decreased 4.7%, reflecting a 4.0 percentage point unfavorable currency impact and a 0.2 percentage point divestiture impact, while Organic Net Sales decreased 0.5% due to volume/mix (-2.1 pp) partially offset by pricing (+1.6 pp). Operating income rose to $1.64 billion from $444 million, and diluted EPS was $0.63 versus a loss of $0.91; Adjusted EPS, a non-GAAP measure, was $0.85 versus $0.61. For the six months, net sales were $13.36 billion and diluted EPS was $1.36. The balance sheet reflects the financing of the Series A Preferred Stock redemption. On June 7, 2016, the company redeemed all $8.3 billion of its 9.00% Series A Preferred Stock, funded primarily by $2.0 billion of 3.000% notes due 2026, $3.0 billion of 4.375% notes due 2046, and euro notes totaling €1.8 billion. Long-term debt, including the current portion, rose to $32.1 billion from $25.2 billion at January 3, 2016. Cash and cash equivalents were $4.24 billion at July 3, 2016, down from $4.84 billion. Net cash provided by operating activities was $2.10 billion for the six months, compared with $411 million a year earlier. The filing also details the Integration Program, which carries an expected pre-tax cost of $1.9 billion and is expected to achieve $1.5 billion of pre-tax savings by 2017. Cumulative savings reached approximately $660 million, and three-month Integration and restructuring expenses were $284 million. The company declared a quarterly dividend of $0.60 per share on August 4, 2016, and noted a Venezuela-related asset write-down of $53 million in cost of products sold.

Kraft Heinz Quarterly Report for Q2 Ended Apr 3, 2016

The Kraft Heinz Company reported net sales of $6.57 billion for the three months ended April 3, 2016, up from $2.48 billion in the prior-year period, primarily driven by the 2015 Merger. Operating income rose to $1.51 billion from $509 million, and net income attributable to common shareholders was $896 million, or $0.73 diluted earnings per share, compared with $96 million and $0.24 a year earlier. The prior-year figures were recast on a pro forma basis for Organic Net Sales and Adjusted EBITDA, where pro forma net sales decreased 3.8% reflecting unfavorable foreign currency (4.5 pp) and divestitures (0.4 pp), while Organic Net Sales increased 1.1% on favorable volume/mix (0.8 pp) and higher pricing (0.3 pp). Adjusted EBITDA increased 21.3% to $1.95 billion and Adjusted EPS rose 37.7% to $0.73, driven by Integration Program savings and favorable pricing net of commodity costs. Integration and restructuring expenses were $260 million in the quarter, and the company has incurred $1.1 billion of cumulative costs under its $1.9 billion Integration Program, which is expected to achieve $1.5 billion of pre-tax savings by 2017. Cash provided by operating activities was $270 million, capital expenditures were $303 million, and cash and cash equivalents ended the quarter at $4.20 billion. Total debt carried at $25.3 billion, with fair value of $27.0 billion, and the company intends to redeem its 9.00% Series A Preferred Stock during the second quarter of 2016, primarily through new debt issuance. The filing also notes a common stock dividend of $0.575 per share declared on May 4, 2016, an annualized rate of $2.30 per share, and a 29.2% effective tax rate. Venezuela contributed net sales of $18 million and operating income of $7 million, and the company disclosed the devaluation of the bolivar and continued liquidity constraints in that market.

Kraft Heinz Quarterly Report for Q3 Ended Sep 27, 2015

The Kraft Heinz Company's quarterly report for the period ended September 27, 2015 reflects the July 2, 2015 merger of Kraft Foods Group, Inc. into a subsidiary of H.J. Heinz Holding Corporation, which was renamed The Kraft Heinz Company at closing. Net sales rose to $6.12 billion in the third quarter, from $2.59 billion a year earlier, and to $11.21 billion for the first nine months, from $8.12 billion. The company reported a net loss of $120 million for the quarter and a net loss of $1 million for the nine months. Diluted loss per share was $0.27 for the quarter and $0.87 for the nine months. Operating income was $399 million in the quarter, down from $409 million, and $1.35 billion for the nine months, up from $1.22 billion. The merger was accounted for under the acquisition method, with total consideration of $52.64 billion and preliminary goodwill of $32.6 billion, which the filing says is not tax deductible. Long-term debt rose to $25.25 billion, from $13.36 billion at year-end 2014, largely due to the assumption of Kraft's debt and new financings. Integration and restructuring expenses were $482 million in the quarter and $587 million for the nine months. The company's Integration Program is expected to deliver $1.5 billion of pre-tax savings by 2017 against $1.9 billion of pre-tax costs. On a pro forma basis, which the filing presents as unaudited, net sales declined 9.0% in the quarter and 6.0% for the nine months, with Pro Forma Organic Net Sales down 2.0% and 1.0%, respectively. Adjusted Pro Forma EPS was $0.44 for the quarter, down 4.3%, and $1.57 for the nine months, up 9.8%. The company declared a quarterly dividend of $0.575 per share on November 5, 2015, an annualized rate of $2.30 per share.

Kraft Heinz Quarterly Report for Q2 Ended Jun 28, 2015

The Kraft Heinz Company (filed under H.J. Heinz Holding Corporation, now The Kraft Heinz Company) reported a second-quarter 2015 net loss attributable to the company of $164 million, compared with net income of $127 million a year earlier. Sales fell to $2.62 billion from $2.73 billion, with unfavorable foreign exchange translation reducing sales by 9.4% and net pricing adding 4.2%. Diluted net loss per share was $0.91 versus $0.14 a year earlier. Results were driven down by a $234 million foreign exchange devaluation loss in Venezuela, $227 million released from accumulated other comprehensive income to interest expense on early termination of interest rate swaps, and interest expense of $394 million versus $168 million. Adjusted EBITDA rose $46 million, or 6.7%, to $739 million, helped by lower restructuring charges and higher North America gross profit. The filing describes the 2015 Merger with Kraft Foods Group, Inc., completed July 2, 2015, after which H.J. Heinz Holding Corporation was renamed The Kraft Heinz Company. These financial statements reflect only the Heinz business; Kraft's results begin in the third quarter of 2015. Berkshire Hathaway holds an $8.0 billion preferred stock investment entitling it to a 9.0% annual dividend, and $360 million of preferred dividends were paid in the first half. The filing gives preliminary merger accounting, including total consideration of $52.9 billion and goodwill of $32.9 billion, with a $348 million inventory step-up to be recognized in cost of products sold. Management also says it is unable to estimate the total cost of the Integration Program. At June 28, 2015, total debt was $13.6 billion and cash was $2.1 billion. Subsequent to quarter end, the company issued $12.9 billion of investment grade debt on July 2, 2015, used to repay the B-1 and B-2 term loans, the 4.25% second lien notes, and Kraft's revolving credit borrowings. The company is classified as a non-accelerated filer and did not file all required reports in the preceding 12 months.