Q1 2024 Kraft Heinz Co Earnings Call (Pre-recorded) Transcript
Key Points
- The Kraft Heinz Co (KHC) reported first quarter results in line with expectations, demonstrating effective execution of their strategic plans.
- Achieved a 170 basis point expansion in adjusted gross profit margin due to successful efficiency initiatives, surpassing inflation impacts.
- Organic net sales in emerging markets grew by 5.5%, with the company expecting double-digit growth for the full year 2024.
- Continued to gain market share across all business segments, with improvements in both developed and emerging markets.
- Increased investments in marketing, R&D, and technology by 8%, 25%, and 20% respectively, supporting innovation and brand superiority.
- Organic net sales for The Kraft Heinz Co (KHC) declined by 0.5% overall, with volume/mix down by 3.2%.
- The Away-From-Home segment experienced flat growth due to industry softness and planned business exits in the U.S.
- In North America, organic net sales declined by 1.2% due to stronger-than-expected retail consumption offset by SNAP headwinds.
- International developed markets saw a 1.3% decline in organic net sales, influenced by retailer inventory reductions in Australia.
- Adjusted operating income and margin in emerging markets declined due to ramped-up investments, which may impact short-term profitability.
Hello. This is Anne-Marie Megela, Head of Global Investor Relations at the Kraft Heinz Company. I'd like to welcome you to our First Quarter 2024 Business Update.
During the following remarks, we will make forward-looking statements regarding our expectations for the future, including related to our business plans and expectations, strategy, efforts and 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, which accompanies these remarks as well as our most recent 10-K, 10-Q and 8-K filings for more information regarding these risks and uncertainties.
Additionally, we will refer to non-GAAP financial measures, which exclude certain items from our financial results reported in accordance with GAAP. Please refer to today's earnings release and the non-GAAP information that accompany these
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
