Kraft Heinz(US:KHC)2025-04-29 11:02Financial Performance - Net sales decreased 6.4% year-over-year to $6.0 billion, with Organic Net Sales down 4.7%[5] - Gross profit margin decreased by 60 basis points to 34.4%, while Adjusted Gross Profit Margin also decreased by 10 basis points to 34.4%[5] - Operating income decreased 8.1% to $1.2 billion, with Adjusted Operating Income down 5.2% to $1.2 billion[8] - Diluted EPS was $0.59, down 10.6%, and Adjusted EPS was $0.62, down 10.1%[5] - Net income attributable to common shareholders for the three months ended March 29, 2025, was $712 million, compared to $801 million for the same period in 2024, representing a decrease of 11.1%[31] - Adjusted Operating Income for the same period was $1,199 million, down from $1,265 million year-over-year, reflecting a decline of 5.2%[36] - The adjusted EPS for the three months ended March 29, 2025, was $0.62, down from $0.69 in the same period last year, a decrease of 10.1%[48] - Adjusted Net Income for Q1 2025 was $743 million, a decline from $847 million in Q1 2024[55] Cash Flow and Capital Expenditures - Year-to-date net cash provided by operating activities was $0.7 billion, down 6.6%, while Free Cash Flow was $0.5 billion, up 1.0%[9] - Cash and cash equivalents increased to $2,113 million as of March 29, 2025, compared to $1,334 million at the end of the previous year[52] - The company reported a net cash provided by operating activities of $720 million for the three months ended March 29, 2025, compared to $771 million in the prior year[54] - Capital expenditures for Q1 2025 were $238 million, down from $294 million in Q1 2024[55] - Free Cash Flow for Q1 2025 increased to $482 million, compared to $477 million in Q1 2024[55] - Free Cash Flow Conversion improved to 65% in Q1 2025, up from 56% in Q1 2024[55] Future Guidance - The company expects Organic Net Sales to decline between 1.5% and 3.5% for the fiscal year 2025[9] - Adjusted EPS guidance for the fiscal year 2025 is projected to be in the range of $2.51 to $2.67[9] - The company anticipates a decrease in Constant Currency Adjusted Operating Income by 5% to 10% compared to the prior year[9] - The effective tax rate on Adjusted EPS is expected to be approximately 26%, reflecting a $0.23 cent headwind year-over-year[9] Segment Performance - The North America segment reported Adjusted Operating Income of $1,101 million for the three months ended March 29, 2025, down from $1,215 million in the prior year, reflecting a decline of 9.4%[36] - Emerging Markets segment Adjusted Operating Income increased by 20.3% year-over-year, reaching $99 million for the three months ended March 29, 2025[38] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures to provide investors with a clearer view of operational performance, excluding certain items that do not reflect underlying operations[22]