Sign In  |  Register  |  About San Anselmo  |  Contact Us

San Anselmo, CA
September 01, 2020 1:33pm
7-Day Forecast | Traffic
  • Search Hotels in San Anselmo

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Kraft Heinz Reports First Quarter 2022 Results

Ongoing Transformation Powers Strong Start to the Year

Raises Full Year Outlook for Organic Net Sales(1)(2) While Holding to Previous Adjusted EBITDA(1)(2) Expectations

The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) today reported financial results for the first quarter of 2022 that reflected strong price realization, resilient retail demand, and foodservice growth.

"Our first quarter was a strong start to the year and yet another period where our team rose to mitigate new and different macro environment challenges," said Kraft Heinz CEO Miguel Patricio. "We continue to build critical capabilities, greater corporate agility, and additional financial flexibility to address short-term turmoil while building our long-term advantage. We still have work to do, more opportunity ahead, and we remain confident in our ability to deliver our plan for the year as well as our long-term growth strategy."

Net Sales

In millions

 

 

Net Sales

 

Organic Net Sales(1) Growth

 

 

March 26,

2022

 

March 27,

2021

 

% Chg vs

PY

 

YoY Growth

Rate

 

  Price  

 

Volume/Mix

For the Three Months Ended

 

 

 

 

 

 

 

 

 

United States

 

$

4,214

 

$

4,608

 

(8.5)%

 

7.2%

 

9.3 pp

 

(2.1) pp

International

 

 

1,444

 

 

1,394

 

3.6%

 

6.7%

 

8.2 pp

 

(1.5) pp

Canada

 

 

387

 

 

392

 

(1.5)%

 

2.5%

 

8.0 pp

 

(5.5) pp

Kraft Heinz

 

$

6,045

 

$

6,394

 

(5.5)%

 

6.8%

 

9.0 pp

 

(2.2) pp

 

Net Income/(Loss) and Diluted EPS

In millions, except per share data

 

 

For the Three Months Ended

 

 

March 26,

2022

 

March 27,

2021

 

% Chg vs

PY

Gross profit

 

$

1,931

 

$

2,201

 

(12.3)%

Operating income/(loss)

 

 

1,115

 

 

1,089

 

2.4%

Net income/(loss)

 

 

781

 

 

568

 

37.5%

Net income/(loss) attributable to common shareholders

 

 

776

 

 

563

 

37.8%

Diluted EPS

 

$

0.63

 

$

0.46

 

37.0%

 

 

 

 

 

 

 

Adjusted EPS(1)

 

 

0.60

 

 

0.72

 

(16.7)%

Adjusted EBITDA(1)

 

$

1,342

 

$

1,580

 

(15.1)%

Q1 2022 Financial Summary

  • Net sales decreased 5.5 percent versus the year-ago period to $6.0 billion, including a negative 11.2 percentage point impact from divestitures net of acquisitions and a negative 1.1 percentage point impact from currency. Organic Net Sales increased 6.8 percent versus the prior year period. Pricing was up 9.0 percentage points versus the prior year period with growth across each reporting segment that was primarily driven by increases to mitigate rising input costs in retail and foodservice channels. Volume/mix declined 2.2 percentage points versus the year-ago period reflecting supply constraints that were partially offset by strong demand for products in retail and a continued recovery in foodservice channels.
  • Net income/(loss) increased 37.5 percent versus the year-ago period to $781 million primarily driven by lower non-cash impairment losses in the current year period, lower interest expense primarily due to debt extinguishment costs in the prior year period, and favorable changes in other expense/(income). These factors were partially offset by lower Adjusted EBITDA and higher tax expenses versus the prior year period. Adjusted EBITDA decreased 15.1 percent versus the year-ago period to $1.3 billion with performance including an unfavorable impact from divestitures of 7.2 percentage points and an unfavorable 0.6 percentage point impact from currency. The remaining year-over-year change in Adjusted EBITDA reflected higher pricing and efficiency gains that were more than offset by higher commodity costs, primarily in dairy, packaging materials, and meat, as well as higher supply chain costs, reflecting inflationary pressure in procurement, logistics and manufacturing costs.
  • Diluted EPS was $0.63, up 37.0 percent versus the prior year, driven by the net income/(loss) factors discussed above. Adjusted EPS(1) was $0.60, down 16.7 percent versus the prior year, primarily driven by lower Adjusted EBITDA, including a negative $0.08 impact from divestitures, and higher taxes on adjusted earnings that more than offset lower interest expense versus the prior year period.
  • Net cash provided by operating activities was $486 million, down 40.0 percent versus the year-ago period, primarily driven by lower Adjusted EBITDA and higher cash outflows for inventories primarily related to stock rebuilding and increased input costs. These impacts were partially offset by lower cash outflows for interest primarily due to prior year reduction of long-term debt and lower cash outflows for variable compensation in 2022 compared to 2021. Free Cash Flow(1) was $272 million, down 53.4 percent versus the comparable prior year period due to the lower net cash provided by operating activities that was partially offset by lower capital expenditures versus the prior year period.

Outlook

The Company continues to expect strong financial performance in 2022. The Company is raising expectations for 2022 Organic Net Sales(2) to a mid-single-digit percentage increase versus the prior year period, reflecting strong performance to date, ongoing business momentum, and additional pricing actions to mitigate ongoing inflation. The Company continues to expect Adjusted EBITDA(2) to be in the range of $5.8 billion to $6.0 billion with a 48 percent to 52 percent first half to second half split. This reflects a 53rd week in 2022, the impact of divestitures versus the prior year, strong Organic Net Sales as well as the Company's ongoing efforts to manage inflationary pressures, including unlocking gross efficiencies, as it continues to invest in long-term growth.

End Notes

(1)

Organic Net Sales, Adjusted EBITDA, Adjusted EPS, Constant Currency Adjusted EBITDA, and Free Cash Flow 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)

Full year 2022 guidance for Organic Net Sales and Adjusted EBITDA 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, and equity award compensation expense, 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 first quarter 2022 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 Daylight 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 2021 net sales of approximately $26 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 and Twitter.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as "address," “anticipate,” “believe,” “build,” "deliver,” “drive,” “expand,” “expect,” “grow,” “improve,” “intend,” “invest,” “leverage,” “mitigate,” “plan,” “reflect,” “transform,” “will,” 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, the impacts of COVID-19 and government and consumer responses; 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, alliances, divestitures, joint ventures, or other 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 ownership structure; 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 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 future 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; 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 in various other nations where the Company does business (including the Russia and Ukraine conflict and its regional and global ramifications); 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; risks associated with 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; 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 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”) that are presented in this press release.

To supplement the financial information provided, the Company has presented Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, 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), 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. Management believes that presenting the Company's non-GAAP financial measures (i.e., Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, and Free Cash Flow) 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.

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. Organic Net Sales is a tool that can assist management and investors in comparing the Company's performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations.

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 (e.g., income related to the sale of licenses in connection with the Cheese Transaction), 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. 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 EBITDA and Constant Currency Adjusted EBITDA are tools that can assist management and investors in comparing the Company's performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations.

Adjusted EPS is defined as diluted earnings per share 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 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. The Company believes Adjusted EPS provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.

Free Cash Flow is defined as net cash provided by/(used for) operating activities less capital expenditures. The Company believes Free Cash Flow provides a measure of the Company's core operating performance, the cash-generating capabilities of the Company's business operations, and is one factor used in determining the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes. 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.

See the attached schedules for supplemental financial data, which includes the financial information, the non-GAAP financial measures and corresponding reconciliations to the comparable GAAP financial measures for the relevant periods.

 

 

 

Schedule 1

The Kraft Heinz Company

Condensed Consolidated Statements of Income

(in millions, except per share data)

(Unaudited)

 

For the Three Months Ended

 

March 26, 2022

 

March 27, 2021

Net sales

$

6,045

 

$

6,394

Cost of products sold

 

4,114

 

 

4,193

Gross profit

 

1,931

 

 

2,201

Selling, general and administrative expenses, excluding impairment losses

 

827

 

 

882

Goodwill impairment losses

 

(11)

 

 

230

Selling, general and administrative expenses

 

816

 

 

1,112

Operating income/(loss)

 

1,115

 

 

1,089

Interest expense

 

242

 

 

415

Other expense/(income)

 

(98)

 

 

(30)

Income/(loss) before income taxes

 

971

 

 

704

Provision for/(benefit from) income taxes

 

190

 

 

136

Net income/(loss)

 

781

 

 

568

Net income/(loss) attributable to noncontrolling interest

 

5

 

 

5

Net income/(loss) attributable to common shareholders

$

776

 

$

563

 

 

 

 

Basic shares outstanding

 

1,225

 

 

1,223

Diluted shares outstanding

 

1,234

 

 

1,232

 

 

 

 

Per share data applicable to common shareholders:

 

 

 

Basic earnings/(loss) per share

$

0.63

 

$

0.46

Diluted earnings/(loss) per share

 

0.63

 

 

0.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Organic Net

Sales

 

  Price  

 

Volume/Mix

March 26, 2022

 

 

 

 

 

 

 

 

 

 

 

United States

$

4,214

 

$

 

$

 

$

4,214

 

 

 

 

International

 

1,444

 

 

(65)

 

 

30

 

 

1,479

 

 

 

 

Canada

 

387

 

 

(1)

 

 

 

 

388

 

 

 

 

Kraft Heinz

$

6,045

 

$

(66)

 

$

30

 

$

6,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 27, 2021

 

 

 

 

 

 

 

 

 

 

 

United States

$

4,608

 

$

 

$

678

 

$

3,930

 

 

 

 

International

 

1,394

 

 

3

 

 

5

 

 

1,386

 

 

 

 

Canada

 

392

 

 

 

 

14

 

 

378

 

 

 

 

Kraft Heinz

$

6,394

 

$

3

 

$

697

 

$

5,694

 

 

 

 

 

Year-over-year growth rates

 

 

 

 

 

 

 

 

 

 

 

United States

 

(8.5)%

 

0.0 pp

 

(15.7) pp

 

 

7.2%

 

9.3 pp

 

(2.1) pp

International

 

3.6%

 

(4.9) pp

 

1.8 pp

 

 

6.7%

 

8.2 pp

 

(1.5) pp

Canada

 

(1.5)%

 

(0.2) pp

 

(3.8) pp

 

 

2.5%

 

8.0 pp

 

(5.5) pp

Kraft Heinz

 

(5.5)%

 

(1.1) pp

 

(11.2) pp

 

 

6.8%

 

9.0 pp

 

(2.2) pp

 

 

Schedule 3

The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

(dollars in millions)

(Unaudited)

 

For the Three Months Ended

 

March 26, 2022

 

March 27, 2021

Net income/(loss)

$

781

 

$

568

Interest expense

 

242

 

 

415

Other expense/(income)

 

(98)

 

 

(30)

Provision for/(benefit from) income taxes

 

190

 

 

136

Operating income/(loss)

 

1,115

 

 

1,089

Depreciation and amortization (excluding restructuring activities)

 

217

 

 

222

Divestiture-related license income

 

(14)

 

 

Restructuring activities

 

19

 

 

18

Deal costs

 

8

 

 

7

Unrealized losses/(gains) on commodity hedges

 

(92)

 

 

(37)

Impairment losses

 

55

 

 

230

Equity award compensation expense (excluding restructuring activities)

 

34

 

 

51

Adjusted EBITDA

$

1,342

 

$

1,580

 

 

 

 

Segment Adjusted EBITDA:

 

 

 

United States

$

1,091

 

$

1,280

International

 

242

 

 

283

Canada

 

82

 

 

87

General corporate expenses

 

(73)

 

 

(70)

Adjusted EBITDA

$

1,342

 

$

1,580

 

 

 

 

 

 

 

 

 

Schedule 4

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

March 26, 2022

 

 

 

 

 

United States

$

1,091

 

$

 

$

1,091

International

 

242

 

 

(9)

 

 

251

Canada

 

82

 

 

 

 

82

General corporate expenses

 

(73)

 

 

1

 

 

(74)

Kraft Heinz

$

1,342

 

$

(8)

 

$

1,350

 

 

 

 

 

 

March 27, 2021

 

 

 

 

 

United States

$

1,280

 

$

 

$

1,280

International

 

283

 

 

1

 

 

282

Canada

 

87

 

 

 

 

87

General corporate expenses

 

(70)

 

 

 

 

(70)

Kraft Heinz

$

1,580

 

$

1

 

$

1,579

 

Year-over-year growth rates

 

 

 

 

 

United States

 

(14.8)%

 

0.0 pp

 

 

(14.8)%

International

 

(14.4)%

 

(3.6) pp

 

 

(10.8)%

Canada

 

(5.8)%

 

(0.2) pp

 

 

(5.6)%

General corporate expenses

 

4.5%

 

(1.9) pp

 

 

6.4%

Kraft Heinz

 

(15.1)%

 

(0.6) pp

 

 

(14.5)%

 

 

Schedule 5

The Kraft Heinz Company

Reconciliation of Diluted EPS to Adjusted EPS

(Unaudited)

 

For the Three Months Ended

 

March 26, 2022

 

March 27, 2021

Diluted EPS

$

0.63

 

$

0.46

Restructuring activities(a)

 

0.01

 

 

0.01

Unrealized losses/(gains) on commodity hedges(b)

 

(0.05)

 

 

(0.02)

Impairment losses(c)

 

0.03

 

 

0.19

Losses/(gains) on sale of business(d)

 

 

 

0.02

Other losses/(gains) related to acquisitions and divestitures(e)

 

(0.02)

 

 

Debt prepayment and extinguishment costs(f)

 

 

 

0.06

Adjusted EPS

$

0.60

 

$

0.72

(a)

Gross expenses included in restructuring activities were $19 million ($14 million after-tax) for the three months ended March 26, 2022 and $18 million ($13 million after tax) for the three months ended March 27, 2021 and were recorded in the following income statement line items:

 

Cost of products sold included expenses of $4 million for the three months ended March 26, 2022 and $3 million for the three months ended March 27, 2021; and

 

SG&A included expenses of $15 million for the three months ended March 26, 2022 and $15 million for the three months ended March 27, 2021.

(b)

Gross expenses/(income) included in unrealized losses/(gains) on commodity hedges were income of $92 million ($69 million after-tax) for the three months ended March 26, 2022 and $37 million ($27 million after-tax) for the three months ended March 27, 2021 and were recorded in cost of products sold.

(c)

Gross impairment losses included the following:

 

Income related to goodwill impairment of $11 million ($11 million after-tax) for the three months ended March 26, 2022 and goodwill impairment losses of $230 million ($230 million after-tax) for the three months ended March 27, 2021 and were recorded in SG&A.

 

Property, plant and equipment asset impairment losses of $66 million ($50 million after-tax) for the three months ended March 26, 2022, which were recorded in cost of products sold.

(d)

Gross expenses/(income) included in losses/(gains) on sale of business were expenses of $1 million ($1 million after-tax) for the three months ended March 26, 2022 and $19 million ($19 million after-tax) for the three months ended March 27, 2021 and were recorded in other expense/(income).

(e)

Gross expenses/(income) included in other losses/(gains) related to acquisitions and divestitures were income of $38 million ($29 million after-tax) for the three months ended March 26, 2022 and were recorded in other expense/(income).

(f)

Gross expenses included in debt prepayment and extinguishment costs were $106 million ($80 million after-tax) for the three months ended March 27, 2021 and were recorded in interest expense.

 

 

 

 

Schedule 6

The Kraft Heinz Company

Key Drivers of Change in Adjusted EPS

(Unaudited)

 

For the Three Months Ended

 

 

 

March 26, 2022

 

March 27, 2021

 

$ Change

Key drivers of change in Adjusted EPS:

 

 

 

 

 

Results of operations(a)(b)

$

0.76

 

$

0.82

 

$

(0.06)

Results of divested operations

 

 

 

0.08

 

 

(0.08)

Interest expense

 

(0.17)

 

 

(0.21)

 

 

0.04

Other expense/(income)

 

0.04

 

 

0.03

 

 

0.01

Effective tax rate

 

(0.03)

 

 

 

 

(0.03)

Adjusted EPS

$

0.60

 

$

0.72

 

$

(0.12)

(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 March 26, 2022 and March 27, 2021.

(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 March 26, 2022.

 

 

 

Schedule 7

The Kraft Heinz Company

Condensed Consolidated Balance Sheets

(in millions, except per share data)

(Unaudited)

 

March 26, 2022

 

December 25, 2021

ASSETS

 

 

 

Cash and cash equivalents

$

2,978

 

$

3,445

Trade receivables, net

 

2,067

 

 

1,957

Inventories

 

3,093

 

 

2,729

Prepaid expenses

 

179

 

 

136

Other current assets

 

869

 

 

716

Assets held for sale

 

89

 

 

11

Total current assets

 

9,275

 

 

8,994

Property, plant and equipment, net

 

6,602

 

 

6,806

Goodwill

 

31,440

 

 

31,296

Intangible assets, net

 

43,640

 

 

43,542

Other non-current assets

 

2,907

 

 

2,756

TOTAL ASSETS

$

93,864

 

$

93,394

LIABILITIES AND EQUITY

 

 

 

Commercial paper and other short-term debt

$

50

 

$

14

Current portion of long-term debt

 

730

 

 

740

Trade payables

 

4,610

 

 

4,753

Accrued marketing

 

874

 

 

804

Interest payable

 

315

 

 

268

Other current liabilities

 

2,485

 

 

2,485

Total current liabilities

 

9,064

 

 

9,064

Long-term debt

 

20,970

 

 

21,061

Deferred income taxes

 

10,609

 

 

10,536

Accrued postemployment costs

 

209

 

 

205

Long-term deferred income

 

1,525

 

 

1,534

Other non-current liabilities

 

1,643

 

 

1,542

TOTAL LIABILITIES

 

44,020

 

 

43,942

Redeemable noncontrolling interest

 

47

 

 

4

Equity:

 

 

 

Common stock, $0.01 par value

 

12

 

 

12

Additional paid-in capital

 

52,954

 

 

53,379

Retained earnings/(deficit)

 

(905)

 

 

(1,682)

Accumulated other comprehensive income/(losses)

 

(1,812)

 

 

(1,824)

Treasury stock, at cost

 

(605)

 

 

(587)

Total shareholders' equity

 

49,644

 

 

49,298

Noncontrolling interest

 

153

 

 

150

TOTAL EQUITY

 

49,797

 

 

49,448

TOTAL LIABILITIES AND EQUITY

$

93,864

 

$

93,394

 

 

 

Schedule 8

The Kraft Heinz Company

Condensed Consolidated Statements of Cash Flow

(in millions)

(Unaudited)

 

For the Three Months Ended

 

March 26, 2022

 

March 27, 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income/(loss)

$

781

 

$

568

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

 

 

 

Depreciation and amortization

 

220

 

 

222

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

 

(4)

 

 

(2)

Divestiture-related license income

 

(14)

 

 

Equity award compensation expense

 

34

 

 

51

Deferred income tax provision/(benefit)

 

23

 

 

127

Postemployment benefit plan contributions

 

(7)

 

 

(9)

Goodwill and intangible asset impairment losses

 

(11)

 

 

230

Nonmonetary currency devaluation

 

4

 

 

4

Loss/(gain) on sale of business

 

1

 

 

19

Other items, net

 

(69)

 

 

30

Changes in current assets and liabilities:

 

 

 

Trade receivables

 

(123)

 

 

(34)

Inventories

 

(382)

 

 

(101)

Accounts payable

 

6

 

 

(11)

Other current assets

 

(91)

 

 

(54)

Other current liabilities

 

118

 

 

(230)

Net cash provided by/(used for) operating activities

 

486

 

 

810

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Capital expenditures

 

(214)

 

 

(227)

Payments to acquire business, net of cash acquired

 

(241)

 

 

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

 

(20)

 

 

Other investing activities, net

 

6

 

 

11

Net cash provided by/(used for) investing activities

 

(469)

 

 

(216)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Repayments of long-term debt

 

(9)

 

 

(1,014)

Debt prepayment and extinguishment costs

 

 

 

(103)

Dividends paid

 

(490)

 

 

(489)

Other financing activities, net

 

14

 

 

(37)

Net cash provided by/(used for) financing activities

 

(485)

 

 

(1,643)

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

 

2

 

 

(8)

Cash, cash equivalents, and restricted cash

 

 

 

Net increase/(decrease)

 

(466)

 

 

(1,057)

Balance at beginning of period

 

3,446

 

 

3,418

Balance at end of period

$

2,980

 

$

2,361

 

 

 

Schedule 9

The Kraft Heinz Company

Reconciliation of Net Cash Provided By/(Used For) Operating Activities to Free Cash Flow

(in millions)

(Unaudited)

 

For the Three Months Ended

 

March 26, 2022

 

March 27, 2021

Net cash provided by/(used for) operating activities

$

486

 

$

810

Capital expenditures

 

(214)

 

 

(227)

Free Cash Flow

$

272

 

$

583

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanAnselmo.com & California Media Partners, LLC. All rights reserved.