Kraft Heinz Unveils First Quarter 2024 Financial Results
The Kraft Heinz Company (Nasdaq: KHC) shared its financial performance for the first quarter of 2024 today.
Carlos Abrams-Rivera, CEO of Kraft Heinz, expressed satisfaction with the company’s strategic initiatives aimed at enhancing efficiencies and driving sales growth. He noted that the first quarter results aligned with expectations, showcasing growth across key strategic areas such as Global Away From Home, Emerging Markets, and North America Retail ACCELERATE Platforms. Abrams-Rivera highlighted sequential volume recovery and a year-over-year increase in operating income.
Abrams-Rivera emphasized the ongoing impact of the company’s Agile@Scale methodology in facilitating business reinvestment, which supports innovation, brand development, marketing strategies, sales optimization, and overall productivity.
Despite challenges, Kraft Heinz reiterated its outlook for 2024, expressing confidence in its ability to sustain profitable growth. Key highlights from the first quarter include:
- Net sales decreased by 1.2% to $6.4 billion compared to the previous year, with organic net sales down by 0.5%. Price increased by 2.7%, driven by list price adjustments to mitigate higher input costs, while volume/mix declined by 3.2% primarily due to pricing actions and SNAP benefit reductions in the United States.
- Operating income rose by 4.7% to $1.3 billion, primarily attributed to unrealized gains on commodity hedges and higher Adjusted Operating Income, partially offset by unfavorable volume/mix and increased investments.
- Diluted EPS stood at $0.66, a decrease of 2.9% compared to the prior year period, influenced by a net loss on business sales and higher tax expenses, partially offset by increased operating income and fewer shares outstanding. Adjusted EPS reached $0.69, up by 1.5%, driven by higher Adjusted Operating Income and reduced shares outstanding.
- Net cash provided by operating activities increased by 58.6% to $771 million, with Free Cash Flow reaching $477 million, up by 116.8% compared to the previous year period.
Regarding capital return, the company paid $486 million in cash dividends and repurchased $329 million of common stock. The Board of Directors authorized a share repurchase program of up to $3.0 billion through December 26, 2026.
Outlook for fiscal year 2024 remains unchanged, with expectations of Organic Net Sales growth, Adjusted Operating Income growth, and Adjusted EPS growth. The company anticipates positive contributions from price and expects Adjusted Gross Profit Margin expansion.
Please refer to the end notes of the press release for further details on non-GAAP financial measures and guidance.
