Kraft Heinz(US:KHC) Sou Hu Cai Jing·2025-08-03 08:12Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, reported a significant decline in net profit, down 59% year-over-year, raising concerns about the company's performance and Buffett's impending retirement [1][8]. Financial Performance - In Q2 2025, Berkshire achieved revenue of $92.515 billion, slightly down from $93.653 billion in the same period last year [1]. - Net earnings attributable to Berkshire shareholders were $12.370 billion, compared to $30.348 billion in Q2 2024, marking a 59% drop [4]. - Earnings per share were $8,601, exceeding market expectations of $7,443, but down from $21,122 a year earlier [1]. Investment Activities - Berkshire has been a net seller of stocks for 11 consecutive quarters, and despite a more than 10% decline from its historical stock price peak, the company did not repurchase any shares in the first half of 2025 [1]. - The company's top five holdings include American Express, Apple, Bank of America, Coca-Cola, and Chevron [1]. - As of the end of Q2, Berkshire's cash and cash equivalents stood at $344.1 billion, slightly down from $347.0 billion at the end of Q1 [1]. Impairment and Strategic Moves - Berkshire recognized a $3.8 billion impairment loss on its investment in Kraft Heinz, reducing its book value to $8.4 billion [5]. - The investment in Kraft Heinz has seen a 62% decline in stock price since the merger in 2015, significantly underperforming the S&P 500, which has risen over 200% in the same period [5]. - Berkshire has reduced its involvement in Kraft Heinz's board, signaling a potential exit from daily operations [5]. Market Trends and Challenges - Kraft Heinz is reportedly considering a major split of its grocery business, which could be valued at $20 billion, in response to stagnant growth and changing consumer preferences [6][7]. - The company is facing pressure to adapt to consumer trends favoring fresher and healthier food options [7]. Leadership Transition - Warren Buffett announced plans to retire by the end of the year, recommending Greg Abel as his successor [8]. - Since the announcement of Buffett's retirement, Berkshire's Class A shares have dropped over 12%, underperforming the S&P 500 [8]. Economic and Trade Concerns - Berkshire issued warnings regarding the potential impacts of U.S. trade policies and tariffs on its operations and investments, highlighting significant uncertainties in the current economic environment [10].