Q2 2024 Kraft Heinz Co Earnings Call Transcript
Key Points
- The Kraft Heinz Co (KHC) has returned over $1.5 billion in capital to shareholders through dividends and share repurchases so far this year.
- The company increased free cash flow by nearly $100 million, or approximately 9%, compared to last year.
- KHC has been able to hold prices below inflation while continuing to invest in innovation, marketing, and R&D.
- The company is seeing positive volume growth in emerging markets despite headwinds in Brazil and China.
- KHC has made significant progress in improving working capital and maintaining its targeted leverage ratio.
- The company is facing a difficult consumer environment, which necessitates selective promotion and trade spend activity to drive better volume results.
- There are concerns about price gaps across the portfolio, with an estimated 30% to 40% of the portfolio requiring incremental investment in the US.
- Volume in the away-from-home business declined by 2.1% globally, impacted by plant closures and discontinuations.
- The company is experiencing challenges in key overseas markets like the UK, China, and Brazil, with varying dynamics affecting performance.
- There is a need for continued price investments and volume improvements, which could pressure gross margins over the next 12 months.
Good day and thank you for standing by. Welcome to the Kraft Heinz Company second quarter results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
(Operator Instructions) I would now like to hand the conference over to your speaker today, Anne-Marie Megela.
Thank you, and hello, everyone. This is Anne-Marie Megela, Head of Global Investor Relations at The Kraft Heinz Company. And welcome to our Q&A session for our second quarter 2024 business update.
During today's call, we may make forward-looking statements regarding our expectations for the future, including items related to our business plans and expectation, strategy, original investments, and related timing, and expected impacts.
These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statements and risk factors contained in today's earnings release,
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