Press release
Kraft Heinz Affirms Full Year 2022 Guidance, Reduces Leverage Target and Details Long-term Algorithm
PITTSBURGH & CHICAGO--(BUSINESS WIRE)-- The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) will today affirm its full year 2022 guidance,
About this update from The Kraft Heinz Company
[{"type":"text","content":" PITTSBURGH & CHICAGO--(BUSINESS WIRE)--\nThe Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) will today affirm its full year 2022 guidance, announce a reduced leverage target and outline additional details on its long-term algorithm, as executives participate in the 2022 Barclays Global Consumer Staples Conference. Miguel Patricio, Chief Executive Officer and Chair of the Board of Directors; Andre Maciel, EVP and Global Chief Financial Officer; and Carlos Abrams-Rivera, EVP and President, North America Zone, will share their perspectives as part of a discussion about the ongoing Kraft Heinz transformation and plans to accelerate profitable growth.\n\n“We have successfully completed two phases of our ongoing transformation – resetting our foundation and implementing our operating model,” said Patricio. “With the right people, portfolio and capabilities in place, we now look ahead to accelerating profitable growth. Achieving greatness will also include a focus on personalized marketing and a strong emphasis on innovation. I am excited about what we have accomplished so far and how it positions us for the future, but we still have work to do.”\n\nLong-term Financial Profile\n\nThe Company’s previously announced long-term algorithm reflects this accelerated growth profile with targeted:\n\n\nOrganic Net Sales(1) growth of 2% to 3%;\n\n\nAdjusted EBITDA(1) growth of 4% to 6%; and\n\n\nAdjusted EPS(1) growth of 6% to 8%.\n\n\nThe Company plans to drive Organic Net Sales growth of 2% to 3% through its three strategic pillars of growth, each anticipated to contribute approximately one percentage point of growth with the following targets:\n\n\nNorth America Zone Retail representing approximately two-thirds of total Company Organic Net Sales and growing approximately 1% to 2%, in line with pre-pandemic industry growth.\n\n\nFoodservice representing roughly 15% of total Company Organic Net Sales and growing mid-to-high single digits.\n\n\nEmerging Markets Retail, within the Company’s International Zone, representing approximately 10% of total Company Organic Net Sales and growing double digits.\n\n\nAdjusted EBITDA growth of 4% to 6% is expected to be driven by Organic Net Sales growth, gross margin expansion enabled primarily by anticipated gross efficiencies of nearly 3% per year, and flat overhead as a percentage of...