WS Investor
11 Feb 2026, 21:20
The Kraft Heinz Company reported weaker sales and margin pressure for 2025, alongside significant non-cash impairment charges, while outlining a $600 million investment plan aimed at restoring profitable growth in 2026.
For full-year 2025, net sales declined 3.5%, with Organic Net Sales down 3.4%. Gross profit margin decreased 140 basis points to 33.3%, and Adjusted Gross Profit Margin declined 120 basis points to 33.5%. The company recorded an operating loss of $4.7 billion, primarily driven by $9.3 billion in non-cash impairment losses. Adjusted Operating Income totaled $4.7 billion, down 11.5% year over year.
Cash generation remained resilient. Net cash provided by operating activities increased 6.6% to $4.5 billion, while Free Cash Flow rose 15.9% to $3.7 billion. The company returned $2.3 billion of capital to shareholders during the year.
In the fourth quarter, net sales fell 3.4%, with Organic Net Sales down 4.2%. Gross profit margin decreased 150 basis points to 32.6%, while Adjusted Gross Profit Margin declined 130 basis points to 33.1%. Operating income was $1.1 billion, and Adjusted Operating Income was $1.2 billion, down 15.9%. Diluted EPS dropped 68.8% to $0.55, while Adjusted EPS declined 20.2% to $0.67.
CEO Steve Cahillane said the company will pause work related to its previously announced separation plans, citing the need to concentrate resources on executing its operating plan and avoiding related dis-synergies.
To support a return to profitable growth, Kraft Heinz announced a $600 million investment focused on marketing, sales, R&D, product superiority, and selective pricing initiatives. Management emphasized that strong Free Cash Flow and a solid balance sheet position the company to fund these investments while continuing shareholder returns.
The company also provided its full-year 2026 outlook, signaling a renewed strategic focus on accelerating momentum in its Taste Elevation portfolio and stabilizing its U.S. business.
Source: Business Wire.
For full-year 2025, net sales declined 3.5%, with Organic Net Sales down 3.4%. Gross profit margin decreased 140 basis points to 33.3%, and Adjusted Gross Profit Margin declined 120 basis points to 33.5%. The company recorded an operating loss of $4.7 billion, primarily driven by $9.3 billion in non-cash impairment losses. Adjusted Operating Income totaled $4.7 billion, down 11.5% year over year.
Cash generation remained resilient. Net cash provided by operating activities increased 6.6% to $4.5 billion, while Free Cash Flow rose 15.9% to $3.7 billion. The company returned $2.3 billion of capital to shareholders during the year.
In the fourth quarter, net sales fell 3.4%, with Organic Net Sales down 4.2%. Gross profit margin decreased 150 basis points to 32.6%, while Adjusted Gross Profit Margin declined 130 basis points to 33.1%. Operating income was $1.1 billion, and Adjusted Operating Income was $1.2 billion, down 15.9%. Diluted EPS dropped 68.8% to $0.55, while Adjusted EPS declined 20.2% to $0.67.
CEO Steve Cahillane said the company will pause work related to its previously announced separation plans, citing the need to concentrate resources on executing its operating plan and avoiding related dis-synergies.
To support a return to profitable growth, Kraft Heinz announced a $600 million investment focused on marketing, sales, R&D, product superiority, and selective pricing initiatives. Management emphasized that strong Free Cash Flow and a solid balance sheet position the company to fund these investments while continuing shareholder returns.
The company also provided its full-year 2026 outlook, signaling a renewed strategic focus on accelerating momentum in its Taste Elevation portfolio and stabilizing its U.S. business.
Source: Business Wire.