Kraft Heinz(US:KHC) Shang Hai Zheng Quan Bao·2025-08-02 14:20Core Points - Berkshire Hathaway reported a significant decline in net profit for Q2 2025, with a net profit of $12.37 billion, down 59.24% from $30.35 billion in the same period last year [2][4][6] - The decline in net profit was largely attributed to substantial investment losses, particularly a $5 billion pre-tax impairment loss related to its investment in Kraft Heinz [2][8][9] Financial Performance - For Q2 2025, Berkshire's revenue was $92.515 billion, a decrease of 1.22% from $93.653 billion in Q2 2024 [4] - The company's operating earnings for Q2 2025 were $11.16 billion, a 3.8% decrease from $11.598 billion in Q2 2024 [6][7] - For the first half of 2025, Berkshire's total net profit was $16.973 billion, down from $43.05 billion in the same period last year [4][5] Investment Performance - Berkshire's investment gains for Q2 2025 were $4.97 billion, compared to $18.75 billion in Q2 2024, indicating a significant drop in investment performance [5][6] - The impairment loss on Kraft Heinz was recognized as non-temporary due to ongoing economic uncertainties and the company's declining fair value [9][10] Business Segment Analysis - The decline in operating earnings was primarily driven by a drop in insurance underwriting income, which fell to $1.992 billion, down approximately 12% year-over-year [7] - In contrast, the BNSF railway segment showed strong performance with operating income of $1.466 billion, a year-over-year increase of 19.48% [7] Cash Reserves and Stock Activity - As of June 30, 2025, Berkshire's cash and cash equivalents stood at $344.1 billion, a slight decrease from $347.7 billion at the end of Q1 2025 [14] - The company has been cautious in the stock market, having net sold approximately $3 billion in stocks over the past 11 quarters and refraining from stock buybacks for four consecutive quarters [14]