Core Insights - The Kraft Heinz Company (KHC) reported second-quarter 2025 results with both top and bottom lines exceeding the Zacks Consensus Estimate, although both metrics experienced a year-over-year decline [1][4][11] - The company is focused on delivering high-quality, affordable products through investments in product innovation and manufacturing capabilities, enhancing brand appeal [2] - Kraft Heinz anticipates long-term profitable growth supported by strong cash flow generation and disciplined management of its net leverage ratio [3] Financial Performance - Adjusted earnings were 69 cents per share, surpassing the Zacks Consensus Estimate of 64 cents, but down 11.5% year over year due to lower adjusted operating income and increased taxes [4] - Net sales reached $6,352 million, a decline of 1.9% year over year, yet above the Zacks Consensus Estimate of $6,286 million; organic net sales fell by 2% [5][11] - Adjusted gross profit decreased by 5.6% to $2.17 billion, with the adjusted gross margin contracting 140 basis points to 34.1% [7] Segment Performance - North America: Net sales of $4.76 billion, down 3.3% year over year; organic sales fell 3.2% [9] - International Developed Markets: Net sales of $897 million, up 1.3% year over year; organic sales declined 2.2% [10] - Emerging Markets: Net sales of $698 million, an increase of 4.2% year over year; organic sales grew 7.6% [12] Cash Flow and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $1.57 billion and long-term debt of $19.3 billion [13] - Cash dividends paid during the year-to-date period totaled $951 million, with share buybacks amounting to $435 million [14] Future Outlook - For 2025, Kraft Heinz expects organic net sales to decline between 1.5% and 3.5% year over year, with expectations for sequential improvement throughout the year [16] - Adjusted operating income is forecasted to decline by 5% to 10% year over year, with adjusted earnings per share projected in the range of $2.51 to $2.67 [17]