Kraft Heinz(US:KHC) Sou Hu Cai Jing·2025-10-30 10:21Core Viewpoint - Kraft Heinz has faced significant challenges in recent years, including a 3% decline in net sales last year and a continuous drop in stock price, prompting the company to announce a $9.3 billion non-cash impairment charge and plans to split into two separate entities by the second half of 2026 [1][6]. Financial Performance - In Q3, Kraft Heinz reported net sales of $6.237 billion, a year-over-year decrease of 2.3%, with adjusted operating income down 16.9% to $1.106 billion and net profit at $613 million [1][5]. - For the first three quarters, net sales declined by 3.5%, an improvement from a 4.2% decline in the first half of the year [3]. - The company has lowered its full-year performance guidance, expecting organic net sales to decline by 3% to 3.5%, down from a previous forecast of a 1.5% to 3.5% decline [3][9]. Market Segmentation - Emerging markets showed a net sales increase of 3.8% in Q3, reaching $701 million, while North America experienced a 3.8% decline [5][6]. - The planned split will create two companies: "Global Taste Elevation Co." focusing on high-potential categories and regions, and "North American Grocery Co." concentrating on stable growth categories [7][9]. Strategic Decisions - The split is aimed at focusing on core businesses and addressing management complexities within a large organization [9]. - The decision reflects a broader trend among consumer goods giants to streamline operations through divestitures and restructuring to enhance competitiveness [9].