Kraft Heinz Reports Fourth Quarter and Full Year 2023 Results

Full Year Highlights

• Net sales increased 0.6 percent, including a negative 1.8pp impact from a 53rd week in the prior year; Organic Net Sales⁽¹⁾ increased 3.4 percent
• Gross profit margin increased 280 basis points to 33.5 percent; Adjusted Gross Profit Margin⁽¹⁾ increased 240 basis points to 33.7 percent
• Net income increased 20.2 percent; Adjusted EBITDA⁽¹⁾ increased 5.1 percent, including a negative 2.1pp impact from a 53rd week in the prior year
• Diluted EPS was $2.31, up 20.9 percent; Adjusted EPS⁽¹⁾ was $2.98, up 7.2 percent, including a negative 2.4pp impact from a 53rd week in the prior year
• Ended 2023 at target Net Leverage⁽¹⁾ ratio of approximately 3x

Fourth Quarter Highlights

• Net sales decreased 7.1 percent, including a negative 6.1pp impact from a 53rd week in the prior year; Organic Net Sales decreased 0.7 percent
• Gross profit margin increased 180 basis points to 33.8 percent; Adjusted Gross Profit Margin increased 260 basis points to 34.8 percent
• Net income decreased 14.6 percent; Adjusted EBITDA decreased 5.3 percent, including a negative 6.9pp impact from a 53rd week in the prior year
• Diluted EPS was $0.61, down 15.3 percent; Adjusted EPS was $0.78, down 8.2 percent, including a negative 6.9pp impact from a 53rd week in the prior year
• The Company announced a $3 billion share repurchase program on Nov. 27, 2023

• The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) today reported financial results for the fourth quarter and full year 2023.
• “I’m proud of the results we delivered in 2023 and the progress we’ve made as a Company throughout the year,” said Kraft Heinz CEO Carlos Abrams-Rivera. “We delivered net sales growth across each of our key pillars, Global Foodservice, Emerging Markets and U.S. Retail GROW Platforms. We laid out action plans early in 2023 to drive market share and volume improvement – and they worked. We also executed well against our efficiency program, unlocking and powering it in large part with our tech-enabled Agile@Scale methodology. Thanks to these digital advancements and new ways of working, we were able to reinvest dollars across the business to drive future growth. We also strengthened our balance sheet, ending the year at our target Net Leverage of approximately 3x, while executing against our new share repurchase program and maintaining a competitive dividend.”
• Abrams-Rivera continued, “In the fourth quarter, the industry faced headwinds that were driven by ongoing consumer pressure. Looking ahead, we expect some of these pressures to dissipate, particularly as the reduction in SNAP benefits is lapped.
• “For 2024, we expect continued growth for Kraft Heinz. We’ll keep a strong focus on execution against our strategy, supported by investments we’re making in our brands and our people. We’re confident we have the right strategy in place to deliver profitable growth and create value for our stockholders.”

For more information, visit the company’s official release.