Q3 2024 Kraft Heinz Co Earnings Call Transcript
Key Points
- The Kraft Heinz Co (KHC) reported strong cash flow generation, which allows for reinvestment in the business.
- Global away-from-home and emerging markets segments are growing and gaining momentum.
- The company has maintained best-in-class productivity levels for five consecutive quarters, exceeding 4% of COGS.
- Kraft Heinz's Heinz brand grew 4% globally in the quarter, showcasing successful brand management.
- The company is focused on innovation and renovation, with new product launches like spicy nachos for Lunchables and new flavors for Mac & Cheese.
- The Kraft Heinz Co (KHC) does not expect to reach its long-term growth algorithm in 2025, particularly due to challenges in the US retail segment.
- Lunchables faced significant headwinds, including negative publicity and competitive pressures, leading to a large charge and an elongated recovery timeline.
- Spoonables continue to face soft sales, attributed to unfavorable price gaps and execution issues.
- The US retail segment is under pressure, with a propensity for consumers to trade down remaining high.
- Mac & Cheese, despite improvements, is still experiencing market share losses due to increased competition and premium product entries.
Good day and thank you for standing by. Welcome to The Kraft Heinz Company third-quarter results conference call. At this time, all participants are in a listen-only mode. 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, Global Head of Investor Relations.
Thank you, and hello, everyone. Welcome to our Q&A session for our third 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 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 this call as well
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