$KHC (+0.5%) | Kraft Heinz Q3 2024 Earnings Highlights

🔹 Adjusted EPS: $0.75 (Est. $0.74) 🟢; UP +4.2% YoY

🔹 Revenue: $6.4B (Est. $6.43B) 🔴; DOWN -2.8% YoY

FY24 Guidance:

🔹 Adjusted EPS: $3.01-$3.07 (Prior Est.: $3.02) 🟡

🔹 Organic Net Sales: Now expected at the low end of the prior range of -2% to flat YoY

🔹 Adjusted Operating Income Growth: Expected at the low end of 1%-3%

🔹 Adjusted Gross Profit Margin Expansion: At the low end of 75-125 bps YoY

🔹 Effective Tax Rate on Adjusted EPS: ~21%

🔹 Interest and Other Expenses: Expected to remain flat YoY

🔹 Future Potential Share Repurchases: Not reflected in current guidance

Q3 Segment Performance

North America

🔹 Revenue: $4.83B (DOWN -3.4% YoY)

🔹 Organic Net Sales: DOWN -3.2% YoY

🔸 Price Contribution: +1.2 pp

🔸 Volume/Mix: -4.4 pp

International Developed Markets

🔹 Revenue: $882M (DOWN -0.2% YoY)

🔹 Organic Net Sales: DOWN -1.8% YoY

🔸 Price Contribution: -1.0 pp

🔸 Volume/Mix: -0.8 pp

Emerging Markets

🔹 Revenue: $675M (DOWN -2.4% YoY)

🔹 Organic Net Sales: UP +4.9% YoY

🔸 Price Contribution: +3.8 pp

🔸 Volume/Mix: +1.1 pp

Profitability Metrics

🔹 Gross Profit Margin: 34.2% (UP +20 bps YoY)

🔹 Adjusted Gross Profit Margin: 34.3% (UP +30 bps YoY)

🔹 Operating Income: -$101M (DOWN -115.5% YoY) due to $1.4B in non-cash impairment losses

🔹 Adjusted Operating Income: $1.33B (UP +1.4% YoY)

Cash Flow and Capital Return

🔹 Net Cash from Operations (YTD): $2.8B (UP +6.7% YoY)

🔹 Free Cash Flow (YTD): $2.0B (UP +9.7% YoY)