The Kraft Heinz Company · NASDAQ:KHC
The Kraft Heinz — Q4 2024 Earnings Presentation
25 slides from The Kraft Heinz's earnings presentation, Feb 12, 2025
Slide 1: Q4 2024 Business Update
February 12, 2025 Q4 2024 BUSINESS UPDATE TO ACCOMPANY MANAGEMENT COMMENTARY
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS FEBRUARY 12, 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, t
Slide 3: Business & Strategy Update
Q4 2024 Business Update Q4 2024 Business & Strategy Update Chief Executive Officer CARLOS ABRAMS-RIVERA
Slide 4: While 2024 was a challenging year, we are focused on building and investing
Q4 2024 Business Update • While 2024 was a challenging year, we are focused on building and investing for the future, while also increasing cash flow in a sustainable way. • We continue providing capital to our stockholders, returning $2.7B through a highly attractive dividend and strategic share bu
Slide 5: Sales Decelerated while Efficiencies Drove Margin Expansion and Strong Cash Flow
Sales Decelerated while Efficiencies Drove Margin Expansion and Strong Cash Flow Q4 2024 Business Update Total Adjusted Gross Adjusted Organic Net Sales1 Adjusted EPS1 Free Cash Flow1 Profit Margin1 Operating Income1 Kraft Heinz FY ‘24 $25.9B 34.7% $5.4B $3.06 $3.2B vs PY (2.1%) +100bps +1.2% 2.7% +
Slide 6: Full Year Performance in our Strategic Pillars
Full Year Performance in our Strategic Pillars Q4 2024 Business Update Strategic Pillars Organic Net Sales1 FY 2024 Q4 ‘24 vs PY FY ‘24 vs PY N.A. Retail Decline driven by Lunchables, Mac & Cheese, Kraft Mayonnaise, ACCELERATE (5.2%) (2.9%) and the exit of our bulk vinegar business. This is overshad
Slide 7: Investing to Build Brand Superiority to Drive Improved Results in 2025
Investing to Build Brand Superiority to Drive Improved Results in 2025 Q4 2024 Business Update + Strengthening the core and Strengthening value Connecting and engaging Optimizing portfolio to better expanding occasions. proposition to re-engage with families and younger serve consumers across more w
Slide 8: Continued Growth Across Several Brands in North America
Continued Growth Across Several Brands in North America ACCELERATE N.A. Retail Accelerate Ketchup +2% +2% +8% +24% FY Dollar Sales1 vs PY FY Dollar Sales1 vs PY FY Dollar Sales1 vs PY FY Dollar Sales1 vs PY Optimized media investments; Increased marketing; Expanded Increased marketing; Expanded dist
Slide 9: Executing our Strategy in Global Away From Home
Executing our Strategy in Global Away From Home Global Away From Home Higher-Margin Beyond Go To Market Gaining share in Increasing penetration Expanding distribution non-commercial channels across brands & categories in Emerging Markets Entertainment Travel & Leisure U.S. Non-Commercial Channel Phi
Slide 10: Growth in Emerging Markets Powered by Heinz and Go To Market Model
Growth in Emerging Markets Powered by Heinz and Go To Market Model Emerging Markets the Power of Heinz Distribution through Go To Market Model Total Distribution Points3 Heinz Organic Net Sales1,2 +17% Approximately FY ‘24 vs FY ‘23 +8% GTM FY ‘24 vs FY ‘23 10 1| Non-GAAP financial measure. See the
Slide 11: Our Creative Ecosystem is Enabling us to Create Opportunities for Our Brands
Our Creative Ecosystem is Enabling us to Create Opportunities for Our Brands Q4 2024 Business Update Unleashing Creativity Completed Piloting of @ the Speed of Culture Brand Growth System Philadelphia Dollar Sales1 +2% +13% Total Club 1| U.S. Retail dollar sales based on IRI custom hierarchy MULO+ d
Slide 12: Our Innovation Pipeline Continues to Gain Momentum into 2025
Our Innovation Pipeline Continues to Gain Momentum into 2025 Q4 2024 Business Update Innovation as a % of Organic Net Sales1 (Does not include renovation) Mexican Flavor Expansion Taco Bell Mac & Cheese Sold out 2.9% +24% online in 1.8% Dollar Sales2 1 day FY24 vs PY 1.6% Expanding Heinz Convenience
Slide 13: Business & Strategy Update
Q2 2024 Business Update Q4 2024 Business & Strategy Update Global Chief Financial Officer ANDRE MACIEL
Slide 14: Top Line Pressures are Impacting Results
Top Line Pressures are Impacting Results Q4 2024 Business Update Organic Q4 24 vs Q4 23 Net Sales 1 Price Volume / Mix Total Kraft Heinz (3.1%) 1.0pp (4.1pp) North America (3.6%) 0.9pp (4.5pp) Growth in Canada offset by lower sales in U.S. Retail and Away From Home business. International (4.0%) 0.0
Slide 15: Protecting Profitability and Managing our Business in a Disciplined Manner
Protecting Profitability and Managing our Business in a Disciplined Manner Q4 2024 Business Update Adjusted Constant Currency Adjusted Operating Adj. Operating Operating Income Q4 24 vs Q4 23 Income 1 Currency Income 1 Margin1 Total Kraft Heinz (0.3%) (0.2pp) (0.1%) 21.1% Adjusted Operating Income d
Slide 16: Leveraging a Combination of Strategies to Improve Competitiveness
Leveraging a Combination of Strategies to Improve Competitiveness Q4 2024 Business Update Disciplined on in 2024 Increasing Investments in in 2025 Q4 ‘24 % U.S. Volume 1 Sold on Promotion1 Prioritizing growth to come from core, base volumes 2 Remaining mindful of the consumer situation (2%) 3 Fundin
Slide 17: Efficiencies are Generating Margin Expansion and Fueling Reinvestment
Efficiencies are Generating Margin Expansion and Fueling Reinvestment Q4 2024 Business Update Supply Chain Efficiencies Adjusted Gross Profit Margin1 Investments in the Business Gross Efficiencies (% COGS) +100bps FY24 Spend 4.0% Best in Class 34.7% 3.0% 33.7% Marketing2 4.5% % of Net Sales 2.0% 1.0
Slide 18: Our Strong Cash Flow Continues to Fund Increased CapEx Investments
Our Strong Cash Flow Continues to Fund Increased CapEx Investments Q4 2024 Business Update Free Cash Flow Conversion1 Capital Expenditures Adjusted EPS1 (% of Net Sales) +4pp +20bps +7.7% 85% $0.84 81% $0.78 3.8% 4.0% FY23 FY24 FY23 FY24 Q4 '23 Q4 '24 Primarily driven by a conversion of surplus Incr
Slide 19: Maintaining a Strong Balance Sheet and Returning Capital to Stockholders
We are Maintaining a Strong Balance Sheet and Returning Capital to Stockholders Q4 2024 Business Update Capital Allocation in Place Competitive Target Leverage Ratio of Maintain Annual Dividend Approximately 3.0x Investment Grade Maintained Net Leverage1 Returning Incremental Capital Target of ~3.0x
Slide 20: 2025 Outlook
2025 Outlook Q4 2024 Business Update 2025 FY Outlook 2025 FY Considerations • FY25 impact from currency at current FX rates: ~(230bps) Organic Net Sales1 Flat to (2.5%) • Sequential quarterly Organic Net Sales improvement beginning in Q2 • Timing of Easter expected to impact Q1-25 by ~(100bps) • Fla
Slide 21: Business & Strategy Update
Q4 2024 Business Update Q4 2024 Business & Strategy Update Chief Executive Officer CARLOS ABRAMS-RIVERA
Slide 22: In 2025, we are Focused on Executing with Excellence
In 2025, we are Focused on Executing with Excellence Q4 2024 Business Update 2 2 e so s o e o ome um o e o o e es S e P ll s e e 22
Slide 23: In 2025, we are Focused on Executing with Excellence
In 2025, we are Focused on Executing with Excellence Q4 2024 Business Update 2 2 e so s o Proven Track Record Building Momentum Investing for the of Efficiencies in Strategic Pillars Now, Near, and Next $1.3B $1.2B Unlocked Efficiency Efficiencies Runway Identified e o o e es Free Cash Flow Conversi
Slide 24: In 2025, we are Focused on Executing with Excellence
In 2025, we are Focused on Executing with Excellence Q4 2024 Business Update 2 2 e so s o Proven Track Record Building Momentum Investing for the of Efficiencies in Strategic Pillars Now, Near, and Next ~75% of estimated 2025 innovation ~75% of estimated Away From sales coming from innovation Home 2
Slide 25: In 2025, we are Focused on Executing with Excellence
In 2025, we are Focused on Executing with Excellence Q4 2024 Business Update 2 2 e so s o Proven Track Record Building Momentum Investing for the of Efficiencies in Strategic Pillars Now, Near, and Next o e o e e Invest Strengthen in our products, marketing, Sales capabilities across and selective p
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