On Tuesday, Kraft Heinz Firm KHC reported its first-quarter 2025 earnings. The corporate homes fashionable manufacturers like Oscar Mayer, Jell-O, Heinz Ketchup, lunchables and philadelphia cream cheese.
The meals large reported a gross sales decline of 6.4% year-on-year to $5.99 billion, lacking the analyst consensus estimate of $6.02 billion. Adjusted EPS of $0.62 beat the consensus estimate of $0.60.
Gross sales in North America declined by 7%, and Worldwide Developed Markets dropped by 4.4%. Natural web gross sales fell 4.7%.
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Gross revenue decreased by 8% to $2.06 billion, with the margin contracted 60 factors to 34.4%. The working earnings for the quarter dropped 8.1% to $1.2 billion.
Promoting, basic and administrative bills, declined 7.7% to $868 million.
As of March 29, Kraft Heinz held $2.11 billion in money and equivalents. Yr-to-date working money circulate totaled $0.7 billion, with free money circulate of $0.5 billion.
As of March 29, the corporate had remaining authorization to repurchase roughly $1.7 billion of frequent inventory below the publicly introduced share repurchase program.
“We’re carefully monitoring the potential impacts from macro-economic pressures equivalent to tariffs and inflation, and we’re devoted to growing investments to drive product and model superiority to ship extra worth for our shoppers,” mentioned CEO Carlos Abrams-Rivera.
“Because the working atmosphere stays unstable, we’re decreasing our full-year outlook and increasing the vary of our expectations to raised mirror potential outcomes.”
Kraft Heinz declared a common quarterly dividend of $0.40 per share of frequent inventory payable on June 27, 2025, to stockholders of file as of Could 30, 2025.
Outlook: Kraft Heinz lowered the FY25 adjusted EPS outlook from $2.63 – $2.74 to $2.51 – $2.67 versus an estimate of $2.67.
The corporate sees FY25 natural web gross sales to be down 1.5% to three.5% versus the prior yr.
Worth Motion: KHC shares closed increased by 0.21% to $28.87 on Tuesday.
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Photograph by Jonathan Weiss by way of Shutterstock
