The Kraft Heinz Company · NASDAQ:KHC
The Kraft Heinz — Q2 2025 Earnings Presentation
25 slides from The Kraft Heinz's earnings presentation, Jul 30, 2025
Slide 1: Q2 2025 Business Update
July 30, 2025 36.8% Q2 2025 BUSINESS UPDATE TO ACCOMPANY MANAGEMENT COMMENTARY
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS JULY 30, 2025 This presentation contains a number of forward-looking statements as defined under U.S. federal securities laws, including, but not limited to, statements, estimates, and projections relating to our business and long-term strategy; our ambitions, goals, targe
Slide 3: Business & Strategy Update
Q4 2024 Business Update Q2 2025 Business & Strategy Update Chief Executive Officer CARLOS ABRAMS-RIVERA
Slide 4: Q2 results in line with expectations, demonstrating meaningful progress
Q2 2025 Business Update • Q2 results in line with expectations, demonstrating meaningful progress across several key brands. • We are reiterating our 2025 outlook. • We are committed to disciplined investments to provide value to our consumers while driving product and brand superiority. • We contin
Slide 5: Q2 Results in Line with Expectations
Q2 Results in Line with Expectations Q2 2025 Business Update Constant Currency Total Adjusted Gross Year-to-Date Organic Net Sales1 Adj. Operating Adjusted EPS1 Profit Margin1 Free Cash Flow1 Kraft Heinz Income1 Q2 ‘25 $6.3B 34.1% $1.3B $0.69 $1.5B vs PY (2.0%) (140bps) (7.7%) (11.5%) +29% 1| Non-GA
Slide 6: As We Progress on Our Long-Term Strategy
As We Progress on Our Long-Term Strategy Q2 2025 Business Update UNLOCK REINVEST IN THE POWER BRAND ACCELERATE EFFICIENCIES BUSINESS SUPERIORITY PROFITABLE GROWTH 6
Slide 7: Including Two Strategic Pillars Improving Top-Line Performance
Including Two Strategic Pillars Improving Top-Line Performance Q2 2025 Business Update Strategic Pillars Organic Net Sales1 Q1 ‘25 vs PY Q2 ‘25 vs PY Q2 2025 N.A. Retail As expected, material improvement sequentially, with 14 ACCELERATE (8.1%) (2.2%) categories improving (ex. Easter benefit). Q2 YoY
Slide 8: Leveraging our Brand Growth System to Drive Brand and Product Superiority
We’re Leveraging our Brand Growth System to Drive Brand and Product Superiority Q2 2025 Business Update + Leverage Brand Execute With System Identified Areas Where to Invest to Drive Utilizing Agile@Scale Ways of Working to Brand and Product Superiority Accelerate Improvement Across Brands % of Sale
Slide 9: Consumption Trends are Improving Across All Four Categories in Q2
As a Result, Consumption Trends are Improving Across All Four Categories in Q2 Q2 2025 Business Update Dollar Sales1 vs PY Dollar Sales1 vs PY Dollar Sales1 vs PY Dollar Sales1 vs PY Q1 25 Q2 25 Q1 25 Q2 25 Q1 25 Q2 25 Q1 25 Q2 25 7% 0% 0% 0% 5% (1%) (4%) (4%) 3% (2%) (8%) (8%) 1% (3%) (12%) (12%) (
Slide 10: Meeting Consumer Trends in North America Taste Elevation
We’re Meeting Consumer Trends in North America Taste Elevation N.A. Retail Accelerate Steak Sauce Worcestershire Sauce Heinz SIMPLY Primal Kitchen +5% +17% +17% +24% Q2 25 Dollar Sales1,2 vs PY Q2 25 Dollar Sales1,2 vs PY Q2 25 Dollar Sales1 vs PY Q2 25 Dollar Sales3 vs PY The Perfect Pairing for An
Slide 11: Seeing Progress Across Away From Home Despite a Challenging Environment
Seeing Progress Across Away From Home Despite a Challenging Environment Global Away From Home Higher-Margin Beyond Go To Market Growing in higher-margin Increasing penetration Expanding distribution Away From Home channels across brands & categories through sales excellence Dollar Sales Growth1 Hein
Slide 12: Growth in Emerging Markets is Powered by Heinz and Go To Market Model
Growth in Emerging Markets is Powered by Heinz and Go To Market Model Emerging Markets the Power of Heinz Distribution through Go To Market Model GO TO MARKET Emerging Markets Organic Net Sales1,2 Approximately +18% Q2 ‘25 vs PY +6K Total Distribution Points3 Q2 ‘25 vs PY 1| Non-GAAP financial measu
Slide 13: Fueling Growth by Creating New Innovative Opportunities for our Brands
Fueling Growth by Creating New Innovative Opportunities for our Brands Q2 2025 Business Update Exploring Flavors, Satisfying Desires Expanding Accessibility & Relevance Delivering Unique Benefits Bringing the Restaurant Across New Occasions Such as Health Experience to Home and Channels & Wellness S
Slide 14: Building Brands that Resonate with Consumers, Move Culture, and Drive Results
Building Brands that Resonate with Consumers, Move Culture, and Drive Results Q2 2025 Business Update Product-Focused Marketing that Power of Our Investing Behind Product-Centric Revitalizing our Brands by Finding Unlocking Value Through Creative that is Effective and Efficient Relevant Moments in C
Slide 15: Business & Strategy Update
Q4 2024 Business Update Q2 2025 Business & Strategy Update Global Chief Financial Officer ANDRE MACIEL
Slide 16: Q2 in Line With Expectations, Progressing Across Several Key Areas
Q2 in Line With Expectations, Progressing Across Several Key Areas Q2 2025 Business Update Organic Q2 25 vs Q2 24 Net Sales 1 Price Volume / Mix Total Kraft Heinz (2.0%) 0.7pp (2.7pp) North America (3.2%) 0.2pp (3.4pp) Growth in Canada more than offset by lower sales Includes +120bps impact in the U
Slide 17: Adjusted Operating Income Declines Primarily Driven by Inflation
Adjusted Operating Income Declines Primarily Driven by Inflation Q2 2025 Business Update Adjusted Constant Currency Adjusted Operating Adj. Operating Operating Income Q2 25 vs Q2 24 Income 1 Currency Income 1 Margin1 Total Kraft Heinz (7.5%) 0.2pp (7.7%) 20.1% (1.2pp) vs PY North America (12.5%) (0.
Slide 18: Efficiencies Funding Incremental Investments in Key Growth Areas
Efficiencies Funding Incremental Investments in Key Growth Areas Q2 2025 Business Update Investing in while Optimizing our Spend Investing in Price to Fuel Growth Improving Marketing Returns Media Spend ($)1 Media ROI2 Across Key Brands and Markets +DD% +DD% 2024 2025E 2023 2024 2025E • Re-establish
Slide 19: Productivity Savings Helping Mitigate Inflationary Headwinds
Productivity Savings Helping Mitigate Inflationary Headwinds Q2 2025 Business Update Unlocked $1.7B out of our $2.5B Goal1 Adjusted Gross Profit Margin2 Gross Efficiencies Cumulative Gross Efficiencies (% COGS) ($B) (140bps) 4.0% 2.5 35.5% 34.1% 3.0% LTA $2.0 2.0 $1.7 2.0% 1.5 $1.3 1.0% 1.0 0.0% $0.
Slide 20: Continued Strong Cash Generation, with EPS Decline Driven by Results of Operations
Continued Strong Cash Generation, with EPS Decline Driven by Results of Operations Q2 2025 Business Update Free Cash Flow1 and Adjusted EPS1 Free Cash Flow Conversion1 +31pp (11.5%) 96% $0.78 $0.69 65% $1.5B $1.2B YTD '24 YTD '25 Q2 '24 Q2 '25 vs Q2 2024 Primarily driven by improvements in working c
Slide 21: Strong Balance Sheet Provides Better Positioning in Uncertain Times
Strong Balance Sheet Provides Better Positioning in Uncertain Times Q2 2025 Business Update Strong Generation Combined with a Healthy Ratio Free Cash Flow Conversion1 Net Leverage1 > 95% 4.4x 81% 85% 3.0x 2023 2024 2025E 2019 2020 2021 2022 2023 2024 LTM Working capital improvements more than Signif
Slide 22: Capital Allocation Strategy
We Continue to be Excellent Stewards of Capital Q2 2025 Business Update Capital Allocation Strategy Competitive Target Leverage Ratio of Maintain Annual Dividend Approximately 3.0x Investment Grade Invest in Organic Actively Manage Return Incremental Growth Portfolio Capital to Stockholders 2025E Ma
Slide 23: Maintaining a Healthy Balance Sheet While Returning Capital to Stockholders
Maintaining a Healthy Balance Sheet While Returning Capital to Stockholders Q2 2025 Business Update Returned $1.4B Incremental to Stockholders Year-to-Date Maintained Net Leverage1 Returning Incremental Target of ~3.0x Capital to Stockholders 3.0x 3.0x YTD ‘25 Dividends YTD ‘25 Share Repurchases $1B
Slide 24: Reiterating 2025 Outlook
Reiterating 2025 Outlook Q2 2025 Business Update 2025 FY Outlook 2025 FY Considerations • FY25 impact from currency at current FX rates: ~flat Organic Net Sales1 (1.5%) to (3.5%) • Slightly positive contribution from price • Adjusted Gross Profit Margin1: lower end of (25bps) to (75bps) YoY Constant
Slide 25: Business & Strategy Wrap Up
Q4 2024 Business Update Q2 2025 Business & Strategy Wrap Up Chief Executive Officer CARLOS ABRAMS-RIVERA
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