Kraft Heinz Reports Decline in Financial Performance for Q3 and Nine Months of 2024

Kraft Heinz Co. reported a decline in financial performance for the third quarter and the first nine months of 2024, as detailed in its recent 10-Q filing. For the three months ended September 28, 2024, net sales were $6,383 million, down 2.8% from $6,570 million in the same period of 2023. Similarly, net sales for the nine months ended September 28, 2024, totaled $19,270 million, a decrease of 2.6% from $19,780 million year-over-year.

The company's gross profit for the third quarter was $2,186 million, slightly lower than $2,235 million in the prior year. However, gross profit for the nine-month period increased to $6,723 million from $6,609 million, indicating improved profitability despite declining sales. Operating income turned negative in the third quarter, reporting a loss of $101 million compared to a profit of $653 million in the same quarter of 2023. For the nine months, operating income was $1,723 million, down 47.3% from $3,272 million in the previous year, primarily due to significant non-cash impairment losses.

Net income for the third quarter was a loss of $290 million, contrasting with a profit of $254 million in the same quarter of 2023. For the nine months, net income fell to $614 million from $2,089 million, marking a 70.6% decrease. The diluted earnings per share (EPS) reflected this downturn, with a loss of $0.24 for the third quarter compared to a gain of $0.21 in the prior year, and a diluted EPS of $0.50 for the nine months, down from $1.70.

Strategically, Kraft Heinz has undertaken several restructuring initiatives, resulting in the elimination of approximately 100 positions, with an additional 40 expected by year-end. The company also completed the sale of its infant nutrition business in Russia for $25 million and its Papua New Guinea subsidiary for $22 million, which incurred a pre-tax loss of $80 million.

The company reported total assets of $88,566 million as of September 28, 2024, down from $90,339 million at the end of 2023. Total liabilities decreased to $40,097 million from $40,617 million, while total shareholders' equity fell to $48,328 million from $49,526 million. Cash and cash equivalents were reported at $1,284 million, down from $1,400 million at the end of 2023.

Kraft Heinz continues to navigate challenges such as inflation and supply chain stability, with expectations of moderating inflation through efficiency initiatives and pricing actions. The company remains focused on its strategic goals while managing the impacts of market conditions and restructuring efforts.