Kraft Heinz reports US$2.7B net income FY 2024
USA – Kraft Heinz has announced that the net income for the year that ended on 28th December 2024 was US$2.7 billion, equal to US$2.26 per share on the common stock, and down 3.9% from the same period of the previous year when the company earned US$2.9 billion, or US$2.31 per share.
Annual sales were US$25.8 billion, down 3% from the year before when sales were US$26.6 billion. The company’s operating income fell 63% to US$1.7 billion from US$4.6 billion the year before.
The International Developed Markets unit’s sales declined 2.4% to US$3.5 billion from US$3.6 billion the year before. Emerging Markets sales fell 4.3% to US$2.8 billion from US$2.9 billion.
During the fourth quarter, Kraft Heinz earned US$2.1 billion, or US$1.76 per share, a significant increase over the same period the year before, when the company earned US$757 million.
Net sales decreased 4.1% as organic Net Sales decreased 3.1%. Gross profit margin increased 30 basis points to 34.1%; Adjusted Gross Profit Margin decreased 40 basis points to 34.4%.
Operating income decreased 103.1%, driven by non-cash impairment losses of US$1.4 billion; Adjusted Operating Income decreased 0.3%.
Diluted EPS was US$1.76, up 188.5%; Adjusted EPS was US$0.84, up 7.7%.
The company reported that its volume growth in North America was elusive as volume/mix fell 3.5%. The region declined 4.2%, and organic net sales fell 2.1% to US$25.9 billion.
Carlos Abrams-Rivera, CEO, attributed the weak North American performance to four brands: Lunchables, Kraft Mayonnaise, Kraft Mac & Cheese, and Capri Sun.
On a conference call to discuss the company’s full-year and fourth-quarter results, he said, “Across each of these brands, we have kicked off the ‘brand growth system’ — running deep, forensic-like assessments that will uncover the most meaningful opportunities to drive brand superiority.”
FY 2025
For fiscal 2025, Kraft Heinz is guiding organic sales to be flat to down 2.5% compared to fiscal 2024.
Kraft Heinz CEO Carlos Abrams-Rivera said, “As we enter 2025, our focus remains on executing with excellence against our strategic pillars, where we know we have the right to win.
We will leverage initiatives already set in motion, heading into the year with momentum across product innovation, our Brand Growth System to drive brand superiority, Away From Home new client wins, and incremental distribution points across Emerging Markets.”
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