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Wednesday, February 14, 2024 7:00 AM

Kraft Heinz Reports Fourth Quarter and Full Year 2023 Results

Provides Full Year 2024 Outlook for Organic Net Sales(1)(2), Adjusted Operating Income(1)(2), and Adjusted EPS(1)(2)

Full Year Highlights

  • Net sales increased 0.6%, including a negative 1.8pp impact from a 53rd week in the prior year; Organic Net Sales(1) increased 3.4%
  • Gross profit margin increased 280 basis points to 33.5%; Adjusted Gross Profit Margin(1) increased 240 basis points to 33.7%
  • Net income increased 20.2%; Adjusted EBITDA(1) increased 5.1%, including a negative 2.1pp impact from a 53rd week in the prior year
  • Diluted EPS was $2.31, up 20.9%; Adjusted EPS(1) was $2.98, up 7.2%, including a negative 2.4pp impact from a 53rd week in the prior year
  • Ended 2023 at target Net Leverage(1) ratio of approximately 3.0x

Fourth Quarter Highlights

  • Net sales decreased 7.1%, including a negative 6.1pp impact from a 53rd week in the prior year; Organic Net Sales decreased 0.7%
  • Gross profit margin increased 180 basis points to 33.8%; Adjusted Gross Profit Margin increased 260 basis points to 34.8%
  • Net income decreased 14.6%; Adjusted EBITDA decreased 5.3%, including a negative 6.9pp impact from a 53rd week in the prior year
  • Diluted EPS was $0.61, down 15.3%; Adjusted EPS was $0.78, down 8.2%, including a negative 6.9pp impact from a 53rd week in the prior year
  • The Company announced a $3.0 billion share repurchase program on Nov. 27, 2023

The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) today reported financial results for the fourth quarter and full year 2023.

“I’m proud of the results we delivered in 2023 and the progress we’ve made as a Company throughout the year,” said Kraft Heinz CEO Carlos Abrams-Rivera. “We delivered net sales growth across each of our key pillars, Global Foodservice, Emerging Markets, and U.S. Retail GROW Platforms. We laid out action plans early in 2023 to drive market share and volume improvement – and they worked. We also executed well against our efficiency program, unlocking and powering it in large part with our tech-enabled Agile@Scale methodology. Thanks to these digital advancements and new ways of working, we were able to reinvest dollars across the business to drive future growth. We also strengthened our balance sheet, ending the year at our target Net Leverage of approximately 3.0x, while executing against our new share repurchase program and maintaining a competitive dividend.”

Abrams-Rivera continued, “In the fourth quarter, the industry faced headwinds that were driven by ongoing consumer pressure. Looking ahead, we expect some of these pressures to dissipate, particularly as the reduction in SNAP benefits is lapped.

“For 2024, we expect continued growth for Kraft Heinz. We’ll keep a strong focus on execution against our strategy, supported by investments we’re making in our brands and our people. We’re confident we have the right strategy in place to deliver profitable growth and create value for our stockholders.”

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

In millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

Organic Net Sales(1)

 

 

December 30,
2023

 

December 31,
2022

 

% Chg vs
PY

 

YoY Growth
Rate

 

Price

 

Volume/
Mix

For the Three Months Ended

 

 

 

 

 

 

 

 

 

North America

 

$

5,167

 

$

5,684

 

(9.1)%

 

(3.0)%

 

2.5 pp

 

(5.5) pp

International

 

 

1,693

 

 

1,697

 

(0.2)%

 

7.1%

 

7.7 pp

 

(0.6) pp

Kraft Heinz

 

$

6,860

 

$

7,381

 

(7.1)%

 

(0.7)%

 

3.7 pp

 

(4.4) pp

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

20,126

 

$

20,340

 

(1.0)%

 

1.0%

 

7.5 pp

 

(6.5) pp

International

 

 

6,514

 

 

6,145

 

6.0%

 

11.5%

 

13.6 pp

 

(2.1) pp

Kraft Heinz

 

$

26,640

 

$

26,485

 

0.6%

 

3.4%

 

8.9 pp

 

(5.5) pp

Net Income/(Loss) and Diluted EPS

 

 

 

 

In millions, except per share data

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

December 30,
2023

 

December 31,
2022

 

% Chg vs
PY

 

December 30,
2023

 

December 31,
2022

 

% Chg vs
PY

Gross profit

 

$

2,317

 

$

2,364

 

(2.0)%

 

$

8,926

 

$

8,122

 

9.9%

Operating income/(loss)

 

 

1,300

 

 

1,226

 

6.0%

 

 

4,572

 

 

3,634

 

25.8%

Net income/(loss)

 

 

757

 

 

887

 

(14.6)%

 

 

2,846

 

 

2,368

 

20.2%

Net income/(loss) attributable to common shareholders

 

 

757

 

 

890

 

(14.9)%

 

 

2,855

 

 

2,363

 

20.8%

Diluted EPS

 

$

0.61

 

$

0.72

 

(15.3)%

 

$

2.31

 

$

1.91

 

20.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS(1)

 

 

0.78

 

 

0.85

 

(8.2)%

 

 

2.98

 

 

2.78

 

7.2%

Adjusted EBITDA(1)

 

$

1,650

 

$

1,743

 

(5.3)%

 

$

6,307

 

$

6,003

 

5.1%

FY 2023 Financial Summary

  • Net Sales increased 0.6 percent versus the year-ago period to $26.6 billion, including a negative 1.8 percentage point impact from a 53rd week in the prior year period, a negative 0.9 percentage point impact from foreign currency, and a negative 0.1 percentage point impact from divestitures. Organic Net Sales increased 3.4 percent versus the prior year period. Price increased 8.9 percentage points versus the prior year period, with increases in both reportable segments primarily driven by price increases to mitigate rising input costs. Volume/mix declined 5.5 percentage points versus the prior year period, with declines in both reportable segments, primarily driven by elasticity impacts from pricing actions and industry headwinds, particularly the reduction of Supplemental Nutrition Assistance Program (“SNAP”) benefits in the United States.
  • Net income/(loss) increased 20.2 percent versus the year-ago period to $2.8 billion, driven by higher Adjusted EBITDA versus the prior year period, lower non-cash impairment losses in the current year period, an expense related to the securities class action lawsuit in the prior year period, and unrealized losses on commodity hedges in the prior year period. These factors more than offset higher tax expense and unfavorable changes in other expense/(income) driven by non-cash charges related to the $162 million settlement of one of our U.K. defined benefit pension plans in the current year period. Adjusted EBITDA increased 5.1 percent versus the year-ago period to $6.3 billion, primarily driven by higher pricing and efficiency gains. These factors more than offset higher commodity costs, higher supply chain costs (reflecting inflationary pressure in manufacturing, procurement, and logistics), unfavorable volume/mix, increased SG&A (including investments in marketing, technology, and research and development), a negative 2.1 percentage point impact from a 53rd week in the prior year period, and a negative 0.9 percentage point impact from foreign currency.
  • Diluted EPS was $2.31, up 20.9 percent versus the prior year period, primarily driven by the net income/(loss) factors discussed above. Adjusted EPS was $2.98, up 7.2 percent versus the prior year period, primarily driven by higher results of ongoing operations and lower interest expense. These factors were partially offset by a 53rd week in the prior year period, unfavorable changes in other expense/(income), and higher taxes on adjusted earnings.
  • Net cash provided by/(used for) operating activities was $4.0 billion, up 61.0 percent versus the year-ago period, primarily driven by lower cash outflows in the current year for inventories, primarily related to stock rebuilding in the prior year, lower cash outflows in the current year for tax payments driven by taxes paid in 2022 related to the sale of certain assets in our global cheese business and the licensing of certain trademarks, higher Adjusted EBITDA in the current period, and lower interest payments in the current period due to the reduction of long-term debt throughout 2022. These impacts were partially offset by cash payments associated with the settlement of the consolidated securities class action lawsuit. Year-to date Free Cash Flow(1) was $3.0 billion, up 90.7 percent versus the comparable prior year period due to the same drivers of net cash provided by/(used for) operating activities. This more than offset an increase of $97.0 million in capital expenditures in the current year.
  • Capital Return: In fiscal year 2023, the Company paid $1,965 million in cash dividends and repurchased $455 million of common stock. On Nov. 27, 2023, the Company announced that the Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $3.0 billion of the Company’s common stock through Dec. 26, 2026. Of the $455 million shares repurchased in 2023, $300 million were repurchased under the Company’s publicly announced share repurchase program and $155 million were purchased to offset the dilutive effect of equity-based compensation. As of Dec. 30, 2023, the Company had remaining authorization to repurchase $2.7 billion of common stock under the publicly announced share repurchase program.

Q4 2023 Financial Summary

  • Net sales decreased 7.1 percent versus the year-ago period to $6.9 billion, including a negative 6.1 percentage point impact from a 53rd week in the prior year period, a negative 0.2 percentage point impact from foreign currency, and a negative 0.1 percentage point impact from divestitures and acquisitions. Organic Net Sales decreased 0.7 percent versus the prior year period. Price increased 3.7 percentage points versus the prior year period, with increases in both reportable segments primarily driven by list price increases taken to mitigate higher input costs. Volume/mix declined 4.4 percentage points versus the prior year period, with declines in both reportable segments that were primarily driven by elasticity impacts from pricing actions and industry headwinds, particularly the reduction of SNAP benefits in the United States.
  • Net income/(loss) declined 14.6 percent versus the year-ago period to $757 million, primarily driven by non-cash charges related to the $162 million settlement of a U.K. defined benefit pension plan in the current year period, lower Adjusted EBITDA versus the prior year period, and unrealized losses on commodity hedges in the current year period. These factors were partially offset by an expense related to the securities class action lawsuit in the prior year period. Adjusted EBITDA decreased 5.3 percent versus the year-ago period to $1.7 billion, primarily driven by a negative 6.9 percentage point impact from a 53rd week in the prior year period, higher supply chain costs (reflecting inflationary pressure in manufacturing and procurement costs), investments in SG&A (including in marketing, research and development, and technology), unfavorable volume/mix, increased commodity costs, and a negative 0.3 percentage point impact from foreign currency. These factors were partially offset by higher pricing and efficiency gains.
  • Diluted EPS was $0.61, down 15.3 percent versus the prior year period, driven by the net income/(loss) factors discussed above. Adjusted EPS(1) was $0.78, down 8.2 percent versus the prior year period, primarily driven by a 53rd week in the prior year and a higher effective tax rate in the current year. These factors were partially offset by results of ongoing operations and lower interest expense versus the prior year period.

Outlook

For fiscal year 2024, the Company expects:

  • Organic Net Sales (2) growth of 0 to 2 percent versus the prior year. The Company expects a positive contribution from price throughout the year, with volumes inflecting positive in the second half of the year.
  • Adjusted Operating Income (1)(2) growth of 2 to 4 percent versus the prior year. Adjusted Gross Profit Margin(1)(2) is expected to expand modestly, in the range of 25 to 75 basis points versus the prior year.
  • Adjusted EPS (2) growth of 1 to 3 percent, or in the range of $3.01 to $3.07. The Company expects an effective tax rate on Adjusted EPS to be in the range of 20 to 22 percent. Additionally, the Company expects an unfavorable impact of approximately $45 million within interest and other expense/(income) versus the prior year. This is primarily driven by foreign currency headwinds and debt refinancing that will come at a higher rate. The outlook does not include the possibility of additional share buyback in 2024.

End Notes

(1)

Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, Free Cash Flow and Net Leverage are non-GAAP financial measures. Please see discussion of non-GAAP financial measures and the reconciliations at the end of this press release for more information.

(2)

Guidance for Organic Net Sales, Adjusted Gross Profit Margin, Adjusted Operating Income, and Adjusted EPS is provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items impacting comparability, including, but not limited to, the impact of currency, acquisitions and divestitures, divestiture-related license income, restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, equity award compensation expense, nonmonetary currency devaluation, and debt prepayment and extinguishment (benefit)/costs, among other items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation of these measures without unreasonable effort.

Earnings Discussion and Webcast Information

A pre-recorded management discussion of The Kraft Heinz Company's fourth quarter and full year 2023 earnings is available at ir.kraftheinzcompany.com. The Company will host a live question and answer session beginning today at 9:00 a.m. Eastern Standard Time. A webcast of the session will be accessible at ir.kraftheinzcompany.com.

ABOUT THE KRAFT HEINZ COMPANY

We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let’s Make Life Delicious. Consumers are at the center of everything we do. With 2023 net sales of approximately $27 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we’re dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting www.kraftheinzcompany.com or following us on LinkedIn.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as “accelerate,” “anticipate,” “believe,” “build,” “commit,” “continue,” “expect,” “execute,” “invest,” “maintain,” “reflect,” “will,” “guidance,” and “outlook,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the Company's plans, impacts of accounting standards and guidance, growth, legal matters, taxes, costs and cost savings, impairments, dividends, expectations, investments, innovations, opportunities, capabilities, execution, initiatives, and pipeline. These forward-looking statements reflect management's current expectations and are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company's control.

Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, operating in a highly competitive industry; the Company’s ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in the Company's relationships with significant customers or suppliers, or in other business relationships; the Company’s ability to maintain, extend, and expand its reputation and brand image; the Company’s ability to leverage its brand value to compete against private label products; the Company’s ability to drive revenue growth in its key product categories or platforms, increase its market share, or add products that are in faster-growing and more profitable categories; product recalls or other product liability claims; climate change and legal or regulatory responses; the Company’s ability to identify, complete, or realize the benefits from strategic acquisitions, divestitures, alliances, joint ventures, or investments; the Company's ability to successfully execute its strategic initiatives; the impacts of the Company's international operations; the Company's ability to protect intellectual property rights; the Company’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve its competitiveness; the influence of the Company’s largest stockholder; the Company's level of indebtedness, as well as our ability to comply with covenants under our debt instruments; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; compliance with laws and regulations and related legal claims or regulatory enforcement actions; failure to maintain an effective system of internal controls; a downgrade in the Company's credit rating; the impact of sales of the Company's common stock in the public market; the Company’s ability to continue to pay a regular dividend and the amounts of any such dividends; disruptions in the global economy caused by geopolitical conflicts, including the ongoing conflict between Russia and Ukraine; unanticipated business disruptions and natural events in the locations in which the Company or the Company's customers, suppliers, distributors, or regulators operate; economic and political conditions in the United States and various other nations where the Company does business (including inflationary pressures, instability in financial institutions, general economic slowdown, recession, or a potential U.S. federal government shutdown); changes in the Company’s management team or other key personnel and the Company’s ability to hire or retain key personnel or a highly skilled and diverse global workforce; our dependence on information technology and systems, including service interruptions, misappropriation of data, or breaches of security; increased pension, labor, and people-related expenses; changes in tax laws and interpretations and the final determination of tax audits, including transfer pricing matters, and any related litigation; volatility of capital markets and other macroeconomic factors; and other factors. For additional information on these and other factors that could affect the Company’s forward-looking statements, see the Company’s risk factors, as they may be amended from time to time, set forth in its filings with the Securities and Exchange Commission. The Company disclaims and does not undertake any obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.

Non-GAAP Financial Measures

The non-GAAP financial measures provided in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

To supplement the financial information provided, the Company has presented Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, Adjusted Net Income/(Loss), Free Cash Flow, and Net Leverage which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net sales, net income/(loss), gross profit, diluted earnings per share (“EPS”), net cash provided by/(used for) operating activities, or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.

Management uses these non-GAAP financial measures to assist in comparing the Company’s performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company’s underlying operations. The Company believes:

  • Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted Net Income/(Loss), and Adjusted EPS provide important comparability of underlying operating results, allowing investors and management to assess the Company’s operating performance on a consistent basis; and
  • Free Cash Flow and Net Leverage provide a measure of the Company’s core operating performance, the cash-generating capabilities of the Company’s business operations, and are factors used in determining the Company’s borrowing capacity and the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes.

Management believes that presenting the Company’s non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company’s results. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting the Company’s business than could be obtained absent these disclosures.

Definitions

Organic Net Sales is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. The Company calculates the impact of currency on net sales by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which the Company calculates the previous year's results using the current year's exchange rate.

Adjusted Operating Income is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), and provision for/(benefit from) income taxes; in addition to these adjustments, the Company excludes, when they occur, the impacts of restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, and certain non-ordinary course legal and regulatory matters.

Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding restructuring activities); in addition to these adjustments, the Company excludes, when they occur, the impacts of divestiture-related license income, restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities). The Company also presents Adjusted EBITDA on a constant currency basis (Constant Currency Adjusted EBITDA). The Company calculates the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which it calculates the previous year's results using the current year's exchange rate.

Adjusted Gross Profit, Adjusted Net Income/(Loss), and Adjusted EPS are defined as gross profit, net income/(loss), and diluted earnings per share, respectively, excluding, when they occur, the impacts of restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, losses/(gains) on the sale of a business, other losses/(gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment (benefit)/costs, and certain significant discrete income tax items (e.g., U.S. and non-U.S. tax reform), and including when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis. Adjusted Gross Profit Margin is defined as Adjusted Gross Profit divided by net sales.

Net Leverage is defined as debt less cash, cash equivalents and short-term investments divided by Adjusted EBITDA.

Free Cash Flow is defined as net cash provided by/(used for) operating activities less capital expenditures. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.

 

 

 

 

 

 

 

Schedule 1

The Kraft Heinz Company
Consolidated Statements of Income
(in millions, except per share data)
(Unaudited)

 

For the Three Months Ended

 

For the Year Ended

 

December 30, 2023

 

December 31, 2022

 

December 30, 2023

 

December 31, 2022

Net sales

$

6,860

 

$

7,381

 

$

26,640

 

$

26,485

Cost of products sold

 

4,543

 

 

5,017

 

 

17,714

 

 

18,363

Gross profit

 

2,317

 

 

2,364

 

 

8,926

 

 

8,122

Selling, general and administrative expenses, excluding impairment losses

 

1,017

 

 

1,138

 

 

3,692

 

 

3,575

Goodwill impairment losses

 

 

 

 

 

510

 

 

444

Intangible asset impairment losses

 

 

 

 

 

152

 

 

469

Selling, general and administrative expenses

 

1,017

 

 

1,138

 

 

4,354

 

 

4,488

Operating income/(loss)

 

1,300

 

 

1,226

 

 

4,572

 

 

3,634

Interest expense

 

229

 

 

217

 

 

912

 

 

921

Other expense/(income)

 

121

 

 

(42)

 

 

27

 

 

(253)

Income/(loss) before income taxes

 

950

 

 

1,051

 

 

3,633

 

 

2,966

Provision for/(benefit from) income taxes

 

193

 

 

164

 

 

787

 

 

598

Net income/(loss)

 

757

 

 

887

 

 

2,846

 

 

2,368

Net income/(loss) attributable to noncontrolling interest

 

 

 

(3)

 

 

(9)

 

 

5

Net income/(loss) attributable to common shareholders

$

757

 

$

890

 

$

2,855

 

$

2,363

 

 

 

 

 

 

 

 

Basic shares outstanding

 

1,225

 

 

1,226

 

 

1,227

 

 

1,226

Diluted shares outstanding

 

1,232

 

 

1,233

 

 

1,235

 

 

1,235

 

 

 

 

 

 

 

 

Per share data applicable to common shareholders:

 

 

 

 

 

 

 

Basic earnings/(loss) per share

$

0.62

 

$

0.73

 

$

2.33

 

$

1.93

Diluted earnings/(loss) per share

 

0.61

 

 

0.72

 

 

2.31

 

 

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 2

The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)

 

Net Sales

 

Currency

 

Acquisitions
and
Divestitures

 

53rd Week

 

Organic Net
Sales

 

Price

 

Volume/Mix

December 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

5,167

 

$

(1)

 

$

 

$

 

$

5,168

 

 

 

 

International

 

1,693

 

 

13

 

 

 

 

 

 

1,680

 

 

 

 

Kraft Heinz

$

6,860

 

$

12

 

$

 

$

 

$

6,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

5,684

 

$

 

$

 

$

357

 

$

5,327

 

 

 

 

International

 

1,697

 

 

25

 

 

7

 

 

97

 

 

1,568

 

 

 

 

Kraft Heinz

$

7,381

 

$

25

 

$

7

 

$

454

 

$

6,895

 

 

 

 

 

Year-over-year growth rates

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

(9.1)%

 

0.0 pp

 

0.0 pp

 

(6.1) pp

 

 

(3.0)%

 

2.5 pp

 

(5.5) pp

International

 

(0.2)%

 

(0.7) pp

 

(0.4) pp

 

(6.2) pp

 

 

7.1%

 

7.7 pp

 

(0.6) pp

Kraft Heinz

 

(7.1)%

 

(0.2) pp

 

(0.1) pp

 

(6.1) pp

 

 

(0.7)%

 

3.7 pp

 

(4.4) pp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 3

The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Year Ended
(dollars in millions)
(Unaudited)

 

Net Sales

 

Currency

 

Acquisitions and Divestitures

 

53rd Week

 

Organic Net Sales

 

Price

 

Volume/Mix

December 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

20,126

 

$

(65)

 

$

 

$

 

$

20,191

 

 

 

 

International

 

6,514

 

 

(103)

 

 

34

 

 

 

 

6,583

 

 

 

 

Kraft Heinz

$

26,640

 

$

(168)

 

$

34

 

$

 

$

26,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

20,340

 

$

 

$

 

$

357

 

$

19,983

 

 

 

 

International

 

6,145

 

 

82

 

 

60

 

 

97

 

 

5,906

 

 

 

 

Kraft Heinz

$

26,485

 

$

82

 

$

60

 

$

454

 

$

25,889

 

 

 

 

 

Year-over-year growth rates

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

(1.0)%

 

(0.3) pp

 

0.0 pp

 

(1.7) pp

 

 

1.0%

 

7.5 pp

 

(6.5) pp

International

 

6.0%

 

(3.2) pp

 

(0.5) pp

 

(1.8) pp

 

 

11.5%

 

13.6 pp

 

(2.1) pp

Kraft Heinz

 

0.6%

 

(0.9) pp

 

(0.1) pp

 

(1.8) pp

 

 

3.4%

 

8.9 pp

 

(5.5) pp

 

 

Schedule 4

The Kraft Heinz Company
Reconciliation of Net Income/(Loss) to Adjusted EBITDA
(dollars in millions)
(Unaudited)

 

For the Three Months Ended

 

For the Year Ended

 

December 30, 2023

 

December 31, 2022

 

December 30, 2023

 

December 31, 2022

Net income/(loss)

$

757

 

$

887

 

$

2,846

 

$

2,368

Interest expense

 

229

 

 

217

 

 

912

 

 

921

Other expense/(income)

 

121

 

 

(42)

 

 

27

 

 

(253)

Provision for/(benefit from) income taxes

 

193

 

 

164

 

 

787

 

 

598

Operating income/(loss)

 

1,300

 

 

1,226

 

 

4,572

 

 

3,634

Depreciation and amortization (excluding restructuring activities)

 

243

 

 

246

 

 

923

 

 

922

Divestiture-related license income

 

(14)

 

 

(15)

 

 

(54)

 

 

(56)

Restructuring activities

 

35

 

 

36

 

 

60

 

 

74

Deal costs

 

 

 

1

 

 

 

 

9

Unrealized losses/(gains) on commodity hedges

 

54

 

 

(2)

 

 

1

 

 

63

Impairment losses

 

 

 

 

 

662

 

 

999

Certain non-ordinary course legal and regulatory matters

 

 

 

210

 

 

2

 

 

210

Equity award compensation expense

 

32

 

 

41

 

 

141

 

 

148

Adjusted EBITDA

$

1,650

 

$

1,743

 

$

6,307

 

$

6,003

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA:

 

 

 

 

 

 

 

North America

$

1,495

 

$

1,550

 

$

5,603

 

$

5,284

International

 

290

 

 

284

 

 

1,094

 

 

1,017

General corporate expenses

 

(135)

 

 

(91)

 

 

(390)

 

 

(298)

Adjusted EBITDA

$

1,650

 

$

1,743

 

$

6,307

 

$

6,003

 

 

 

 

 

 

 

Schedule 5

The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)

 

Adjusted
EBITDA

 

Currency

 

Constant Currency
Adjusted EBITDA

December 30, 2023

 

 

 

 

 

North America

$

1,495

 

$

(1)

 

$

1,496

International

 

290

 

 

3

 

 

287

General corporate expenses

 

(135)

 

 

(2)

 

 

(133)

Kraft Heinz

$

1,650

 

$

 

$

1,650

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

North America

$

1,550

 

$

 

$

1,550

International

 

284

 

 

6

 

 

278

General corporate expenses

 

(91)

 

 

 

 

(91)

Kraft Heinz

$

1,743

 

$

6

 

$

1,737

 

Year-over-year growth rates

 

 

 

 

 

North America

 

(3.5)%

 

0.0 pp

 

 

(3.5)%

International

 

2.0%

 

(1.4) pp

 

 

3.4%

General corporate expenses

 

48.4%

 

1.6 pp

 

 

46.8%

Kraft Heinz

 

(5.3)%

 

(0.3) pp

 

 

(5.0)%

 

 

 

 

 

 

 

Schedule 6

The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Year Ended

(dollars in millions)

(Unaudited)

 

Adjusted EBITDA

 

Currency

 

Constant Currency
Adjusted EBITDA

December 30, 2023

 

 

 

 

 

North America

$

5,603

 

$

(14)

 

$

5,617

International

 

1,094

 

 

(25)

 

 

1,119

General corporate expenses

 

(390)

 

 

(2)

 

 

(388)

Kraft Heinz

$

6,307

 

$

(41)

 

$

6,348

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

North America

$

5,284

 

$

 

$

5,284

International

 

1,017

 

 

17

 

 

1,000

General corporate expenses

 

(298)

 

 

 

 

(298)

Kraft Heinz

$

6,003

 

$

17

 

$

5,986

 

Year-over-year growth rates

 

 

 

 

 

North America

 

6.0%

 

(0.3) pp

 

 

6.3%

International

 

7.6%

 

(4.3) pp

 

 

11.9%

General corporate expenses

 

31.0%

 

0.6 pp

 

 

30.4%

Kraft Heinz

 

5.1%

 

(0.9) pp

 

 

6.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 7

The Kraft Heinz Company
Reconciliation of GAAP Results to Non-GAAP Results
(dollars in millions)
(Unaudited)

 

For the Three Months Ended

 

December 30, 2023

 

Gross profit

 

Selling, general and administrative expenses

 

Operating income/(loss)

 

Interest expense

 

Other expense/(income)

 

Income/(loss) before income taxes

 

Provision for/(benefit from) income taxes

 

Net income/(loss)

 

Net income/(loss) attributable to noncontrolling interest

 

Net income/(loss) attributable to common shareholders

 

Diluted EPS

GAAP Results

$

2,317

 

$

1,017

 

$

1,300

 

$

229

 

$

121

 

$

950

 

$

193

 

$

757

 

$

 

$

757

 

$

0.61

Items Affecting Comparability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring activities

 

13

 

 

(22)

 

 

35

 

 

 

 

(163)

 

 

198

 

 

29

 

 

169

 

 

 

 

169

 

 

0.14

Unrealized losses/(gains) on commodity hedges

 

54

 

 

 

 

54

 

 

 

 

 

 

54

 

 

13

 

 

41

 

 

 

 

41

 

 

0.03

Losses/(gains) on sale of business

 

 

 

 

 

 

 

 

 

5

 

 

(5)

 

 

(1)

 

 

(4)

 

 

 

 

(4)

 

 

Nonmonetary currency devaluation

 

 

 

 

 

 

 

 

 

(1)

 

 

1

 

 

 

 

1

 

 

 

 

1

 

 

Adjusted Non-GAAP Results

$

2,384

 

 

 

$

1,389

 

 

 

 

 

 

 

 

 

$

964

 

 

 

 

 

$

0.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 8

The Kraft Heinz Company
Reconciliation of GAAP Results to Non-GAAP Results
(dollars in millions)
(Unaudited)

 

For the Three Months Ended

 

December 31, 2022

 

Gross profit

 

Selling, general and administrative expenses

 

Operating income/(loss)

 

Interest expense

 

Other expense/(income)

 

Income/(loss) before income taxes

 

Provision for/(benefit from) income taxes

 

Net income/(loss)

 

Net income/(loss) attributable to noncontrolling interest

 

Net income/(loss) attributable to common shareholders

 

Diluted EPS

GAAP Results

$

2,364

 

$

1,138

 

$

1,226

 

$

217

 

$

(42)

 

$

1,051

 

$

164

 

$

887

 

$

(3)

 

$

890

 

$

0.72

Items Affecting Comparability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring activities

 

12

 

 

(24)

 

 

36

 

 

 

 

(1)

 

 

37

 

 

9

 

 

28

 

 

 

 

28

 

 

0.02

Deal Costs

 

 

 

(1)

 

 

1

 

 

 

 

 

 

1

 

 

1

 

 

 

 

 

 

 

 

Unrealized losses/(gains) on commodity hedges

 

(2)

 

 

 

 

(2)

 

 

 

 

 

 

(2)

 

 

(1)

 

 

(1)

 

 

 

 

(1)

 

 

Certain non-ordinary course legal and regulatory matters

 

 

 

(210)

 

 

210

 

 

 

 

 

 

210

 

 

49

 

 

161

 

 

 

 

161

 

 

0.13

Losses/(gains) on sale of business

 

 

 

 

 

 

 

 

 

24

 

 

(24)

 

 

(15)

 

 

(9)

 

 

 

 

(9)

 

 

(0.01)

Nonmonetary currency devaluation

 

 

 

 

 

 

 

 

 

(1)

 

 

1

 

 

 

 

1

 

 

 

 

1

 

 

Debt prepayment and extinguishment (benefit)/costs

 

 

 

 

 

 

 

26

 

 

 

 

(26)

 

 

(7)

 

 

(19)

 

 

 

 

(19)

 

 

(0.01)

Adjusted Non-GAAP Results

$

2,374

 

 

 

$

1,471

 

 

 

 

 

 

 

 

 

$

1,048

 

 

 

 

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 9

The Kraft Heinz Company
Reconciliation of GAAP Results to Non-GAAP Results
(dollars in millions)
(Unaudited)

 

For the Year Ended

 

December 30, 2023

 

Gross profit

 

Selling, general and administrative expenses

 

Operating income/(loss)

 

Interest expense

 

Other expense/(income)

 

Income/(loss) before income taxes

 

Provision for/(benefit from) income taxes

 

Net income/(loss)

 

Net income/(loss) attributable to noncontrolling interest

 

Net income/(loss) attributable to common shareholders

 

Diluted EPS

GAAP Results

$

8,926

 

$

4,354

 

$

4,572

 

$

912

 

$

27

 

$

3,633

 

$

787

 

$

2,846

 

$

(9)

 

$

2,855

 

$

2.31

Items Affecting Comparability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring activities

 

57

 

 

(3)

 

 

60

 

 

 

 

(165)

 

 

225

 

 

32

 

 

193

 

 

 

 

193

 

 

0.16

Unrealized losses/(gains) on commodity hedges

 

1

 

 

 

 

1

 

 

 

 

 

 

1

 

 

 

 

1

 

 

 

 

1

 

 

Impairment losses

 

 

 

(662)

 

 

662

 

 

 

 

 

 

662

 

 

36

 

 

626

 

 

6

 

 

620

 

 

0.50

Certain non-ordinary course legal and regulatory matters

 

 

 

(2)

 

 

2

 

 

 

 

 

 

2

 

 

 

 

2

 

 

 

 

2

 

 

Losses/(gains) on sale of business

 

 

 

 

 

 

 

 

 

4

 

 

(4)

 

 

(1)

 

 

(3)

 

 

 

 

(3)

 

 

Nonmonetary currency devaluation

 

 

 

 

 

 

 

 

 

(28)

 

 

28

 

 

 

 

28

 

 

 

 

28

 

 

0.02

Certain significant discrete income tax items

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

 

(17)

 

 

 

 

(17)

 

 

(0.01)

Adjusted Non-GAAP Results

$

8,984

 

 

 

$

5,297

 

 

 

 

 

 

 

 

 

$

3,676

 

 

 

 

 

$

2.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 10

The Kraft Heinz Company
Reconciliation of GAAP Results to Non-GAAP Results
(dollars in millions)
(Unaudited)

 

For the Year Ended

 

December 31, 2022

 

Gross profit

 

Selling, general and administrative expenses

 

Operating income/(loss)

 

Interest expense

 

Other expense/(income)

 

Income/(loss) before income taxes

 

Provision for/(benefit from) income taxes

 

Net income/(loss)

 

Net income/(loss) attributable to noncontrolling interest

 

Net income/(loss) attributable to common shareholders

 

Diluted EPS

GAAP Results

$

8,122

 

$

4,488

 

$

3,634

 

$

921

 

$

(253)

 

$

2,966

 

$

598

 

$

2,368

 

$

5

 

$

2,363

 

$

1.91

Items Affecting Comparability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring activities

 

27

 

 

(47)

 

 

74

 

 

 

 

 

 

74

 

 

18

 

 

56

 

 

 

 

56

 

 

0.05

Deal Costs

 

 

 

(9)

 

 

9

 

 

 

 

 

 

9

 

 

4

 

 

5

 

 

 

 

5

 

 

Unrealized losses/(gains) on commodity hedges

 

63

 

 

 

 

63

 

 

 

 

 

 

63

 

 

15

 

 

48

 

 

 

 

48

 

 

0.04

Impairment losses

 

86

 

 

(913)

 

 

999

 

 

 

 

 

 

999

 

 

132

 

 

867

 

 

 

 

867

 

 

0.70

Certain non-ordinary course legal and regulatory matters

 

 

 

(210)

 

 

210

 

 

 

 

 

 

210

 

 

49

 

 

161

 

 

 

 

161

 

 

0.13

Losses/(gains) on sale of business

 

 

 

 

 

 

 

 

 

25

 

 

(25)

 

 

(8)

 

 

(17)

 

 

 

 

(17)

 

 

(0.01)

Other losses/(gains) related to acquisitions and divestitures

 

 

 

 

 

 

 

 

 

38

 

 

(38)

 

 

(9)

 

 

(29)

 

 

 

 

(29)

 

 

(0.02)

Nonmonetary currency devaluation

 

 

 

 

 

 

 

 

 

(17)

 

 

17

 

 

 

 

17

 

 

 

 

17

 

 

0.01

Debt prepayment and extinguishment (benefit)/costs

 

 

 

 

 

 

 

38

 

 

 

 

(38)

 

 

(3)

 

 

(35)

 

 

 

 

(35)

 

 

(0.03)

Adjusted Non-GAAP Results

$

8,298

 

 

 

$

4,989

 

 

 

 

 

 

 

 

 

$

3,441

 

 

 

 

 

$

2.78

 

 

 

Schedule 11

The Kraft Heinz Company
Adjusted Gross Profit Margin
(dollars in millions)
(Unaudited)

 

For the Three Months Ended

 

For the Year Ended

 

December 30,
2023

 

December 31,
2022

 

December 30,
2023

 

December 31,
2022

Adjusted Gross Profit

$

2,384

 

$

2,374

 

$

8,984

 

$

8,298

Net sales

 

6,860

 

$

7,381

 

 

26,640

 

 

26,485

 

 

 

 

 

 

 

 

Adjusted Gross Profit Margin

 

34.8%

 

 

32.2%

 

 

33.7%

 

 

31.3%

 

 

 

Schedule 12

The Kraft Heinz Company
Key Drivers of Change in Adjusted EPS
(Unaudited)

 

For the Three Months Ended

 

 

 

December 30,
2023

 

December 31,
2022

 

$ Change

Key drivers of change in Adjusted EPS:

 

 

 

 

 

Results of operations(a)(b)

$

0.95

 

$

0.94

 

$

0.01

53rd week

 

 

 

0.06

 

 

(0.06)

Interest expense

 

(0.16)

 

 

(0.17)

 

 

0.01

Other expense/(income)

 

0.02

 

 

0.02

 

 

Effective tax rate

 

(0.03)

 

 

 

 

(0.03)

Adjusted EPS

$

0.78

 

$

0.85

 

$

(0.07)

(a)

Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.04 for the three months ended December 30, 2023 and $0.05 for the three months ended December 31, 2022.

(b)

Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.01 for the three months ended December 30, 2023 and December 31, 2022.

 

 

 

Schedule 13

The Kraft Heinz Company
Key Drivers of Change in Adjusted EPS
(Unaudited)

 

For the Year Ended

 

 

 

December 30,
2023

 

December 31,
2022

 

$ Change

Key drivers of change in Adjusted EPS:

 

 

 

 

 

Results of operations(a)(b)

$

3.48

 

$

3.21

 

$

0.27

53rd week

 

 

 

0.06

 

 

(0.06)

Interest expense

 

(0.60)

 

 

(0.63)

 

 

0.03

Other expense/(income)(c)

 

0.11

 

 

0.14

 

 

(0.03)

Effective tax rate

 

(0.01)

 

 

 

 

(0.01)

Adjusted EPS

$

2.98

 

$

2.78

 

$

0.20

(a)

Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.16 in 2023 and $0.17 in 2022.

(b)

Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.04 in 2023 and 2022.

(c)

Includes non-cash amortization of prior service credits, which accounted for a benefit to Adjusted EPS from other expense/(income) of $0.01 in 2023 and 2022.

 

 

 

 

 

Schedule 14

The Kraft Heinz Company
Consolidated Balance Sheets
(in millions, except per share data)
(Unaudited)

 

December 30, 2023

 

December 31, 2022

ASSETS

 

 

 

Cash and cash equivalents

$

1,400

 

$

1,040

Trade receivables, net

 

2,112

 

 

2,120

Inventories

 

3,614

 

 

3,651

Prepaid expenses

 

234

 

 

240

Other current assets

 

566

 

 

842

Assets held for sale

 

3

 

 

4

Total current assets

 

7,929

 

 

7,897

Property, plant and equipment, net

 

7,122

 

 

6,740

Goodwill

 

30,459

 

 

30,833

Intangible assets, net

 

42,448

 

 

42,649

Other non-current assets

 

2,381

 

 

2,394

TOTAL ASSETS

$

90,339

 

$

90,513

LIABILITIES AND EQUITY

 

 

 

Commercial paper and other short-term debt

$

 

$

6

Current portion of long-term debt

 

638

 

 

831

Trade payables

 

4,627

 

 

4,848

Accrued marketing

 

733

 

 

749

Interest payable

 

258

 

 

264

Income taxes payable

 

 

 

Other current liabilities

 

1,781

 

 

2,330

Total current liabilities

 

8,037

 

 

9,028

Long-term debt

 

19,394

 

 

19,233

Deferred income taxes

 

10,201

 

 

10,152

Accrued postemployment costs

 

143

 

 

144

Long-term deferred income

 

1,424

 

 

1,477

Other non-current liabilities

 

1,418

 

 

1,609

TOTAL LIABILITIES

 

40,617

 

 

41,643

Redeemable noncontrolling interest

 

34

 

 

40

Equity:

 

 

 

Common stock, $0.01 par value

 

12

 

 

12

Additional paid-in capital

 

52,037

 

 

51,834

Retained earnings/(deficit)

 

1,367

 

 

489

Accumulated other comprehensive income/(losses)

 

(2,604)

 

 

(2,810)

Treasury stock, at cost

 

(1,286)

 

 

(847)

Total shareholders' equity

 

49,526

 

 

48,678

Noncontrolling interest

 

162

 

 

152

TOTAL EQUITY

 

49,688

 

 

48,830

TOTAL LIABILITIES AND EQUITY

$

90,339

 

$

90,513

 

 

Schedule 15

The Kraft Heinz Company
Consolidated Statements of Cash Flows
(in millions)
(Unaudited)

 

For the Year Ended

 

December 30, 2023

 

December 31, 2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income/(loss)

$

2,846

 

$

2,368

Adjustments to reconcile net income/(loss) to operating cash flows:

 

 

 

Depreciation and amortization

 

961

 

 

933

Amortization of postemployment benefit plans prior service costs/(credits)

 

(14)

 

 

(14)

Divestiture-related license income

 

(54)

 

 

(56)

Equity award compensation expense

 

141

 

 

148

Deferred income tax provision/(benefit)

 

17

 

 

(278)

Postemployment benefit plan contributions

 

(22)

 

 

(23)

Goodwill and intangible asset impairment losses

 

662

 

 

913

Nonmonetary currency devaluation

 

28

 

 

17

Loss/(gain) on sale of business

 

(4)

 

 

(25)

Loss/(gain) on extinguishment of debt

 

 

 

(38)

Other items, net

 

221

 

 

7

Changes in current assets and liabilities:

 

 

 

Trade receivables

 

18

 

 

(228)

Inventories

 

(106)

 

 

(1,121)

Accounts payable

 

(295)

 

 

152

Other current assets

 

139

 

 

(314)

Other current liabilities

 

(562)

 

 

28

Net cash provided by/(used for) operating activities

 

3,976

 

 

2,469

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Capital expenditures

 

(1,013)

 

 

(916)

Payments to acquire business, net of cash acquired

 

 

 

(481)

Settlement of net investment hedges

 

31

 

 

208

Proceeds from sale of business, net of cash disposed and working capital adjustments

 

 

 

88

Other investing activities, net

 

66

 

 

10

Net cash provided by/(used for) investing activities

 

(916)

 

 

(1,091)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Repayments of long-term debt

 

(848)

 

 

(1,465)

Proceeds from issuance of long-term debt

 

657

 

 

Debt prepayment and extinguishment benefit/(costs)

 

 

 

10

Proceeds from issuance of commercial paper

 

150

 

 

228

Repayments of commercial paper

 

(150)

 

 

(228)

Dividends paid

 

(1,965)

 

 

(1,960)

Repurchases of common stock

 

(455)

 

 

(280)

Other financing activities, net

 

(67)

 

 

(19)

Net cash provided by/(used for) financing activities

 

(2,678)

 

 

(3,714)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(19)

 

 

(69)

Cash, cash equivalents, and restricted cash

 

 

 

Net increase/(decrease)

 

363

 

 

(2,405)

Balance at beginning of period

 

1,041

 

 

3,446

Balance at end of period

$

1,404

 

$

1,041

 

 

 

 

 

Schedule 16

The Kraft Heinz Company
Reconciliation of Net Cash Provided By/(Used for) Operating Activities to Free Cash Flow
(in millions)
(Unaudited)

 

For the Year Ended

 

December 30, 2023

 

December 31, 2022

Net cash provided by/(used for) operating activities

$

3,976

 

$

2,469

Capital expenditures

 

(1,013)

 

 

(916)

Free Cash Flow

$

2,963

 

$

1,553

 

Alex Abraham (media)
Alex.Abraham@kraftheinz.com

Anne-Marie Megela (investors)
Anne-Marie.Megela@kraftheinz.com

Source: The Kraft Heinz Company

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