Kraft Heinz Reports Fourth Quarter and Full Year 2025 Results
Provides Full Year 2026 Outlook
Announces $600 Million Investment in Commercial Levers to Return to Profitable Growth; Pauses Work Related to Separation
Full Year Highlights
- Net sales decreased 3.5 percent; Organic Net Sales(1) decreased 3.4 percent
- Gross profit margin decreased 140 basis points to 33.3 percent; Adjusted Gross Profit Margin(1) decreased 120 basis points to 33.5 percent
- Operating Income/(Loss) was a loss of $4.7 billion, driven by non-cash impairment losses of $9.3 billion; Adjusted Operating Income(1) was $4.7 billion, down 11.5 percent
- Net cash provided by operating activities was $4.5 billion, up 6.6 percent; Free Cash Flow(1) was $3.7 billion, up 15.9 percent
- Return of capital to stockholders was $2.3 billion
Fourth Quarter Highlights
- Net sales decreased 3.4 percent; Organic Net Sales decreased 4.2 percent
- Gross profit margin decreased 150 basis points to 32.6 percent; Adjusted Gross Profit Margin decreased 130 basis points to 33.1 percent
- Operating Income/(Loss) was income of $1.1 billion; Adjusted Operating Income was $1.2 billion, down 15.9 percent .
- Diluted EPS was $0.55, down 68.8 percent; Adjusted EPS was $0.67, down 20.2 percent
The Kraft Heinz Company today reported financial results for the fourth quarter and full year 2025 and introduced its 2026 operating plan.
“When I decided to join Kraft Heinz, I knew that this was an exciting opportunity to contemporize iconic brands, better serve consumers and customers and build meaningful shareholder value,” said Steve Cahillane, CEO of Kraft Heinz. “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control. My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year.”
Cahillane continued, “In order to accelerate the momentum we are already seeing in our Taste Elevation portfolio and to drive recovery in our U.S. business, we are today announcing a $600 million investment across Marketing, Sales and R&D as well as product superiority and select pricing. Thanks to disciplined financial stewardship, our balance sheet is strong and our Free Cash Flow capabilities, robust – positioning us well to fund these investments and execute on the plan, while still generating excess cash. We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth.”
“Kraft Heinz is already seeing the benefit of Steve’s deep industry experience and proven track record of building brands and leading large-scale transformations,” said John T. Cahill, Chair of Kraft Heinz’s Board. “From day one, he has brought a fresh, consumer-first perspective that we believe creates a clear glidepath back to profitable growth. We are confident that our decision to pause the work related to the separation and fully focusing our resources in service of growth is the right move at this time. We remain excited about the road ahead for Kraft Heinz.”