Company: KHC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001637459-25-000011
Chunk: 108

Company: Kraft Heinz Co
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 108
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 of the KHFC Senior Notes) (together, the “Obligor Group”), on a combined basis after the elimination of all intercompany balances and transactions between the Parent Guarantor and subsidiary issuer and investments in any subsidiary that is a non-guarantor.

Summarized Statement of Income

For the Year EndedDecember 28, 2024Net sales$16,828 Gross profit(a)6,489 Intercompany service fees and other recharges4,635 Operating income/(loss)1,053 Equity in earnings/(losses) of subsidiaries2,552 Net income/(loss)2,744 Net income/(loss) attributable to common shareholders2,744 

(a)    In 2024, the Obligor Group recorded $455 million of net sales to the non-guarantor subsidiaries and $63 million of purchases from the non-guarantor subsidiaries.

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Summarized Balance Sheets

December 28, 2024ASSETSCurrent assets$4,506 Current assets due from affiliates(a)445 Non-current assets5,848 Goodwill8,823 Intangible assets, net1,881 Non-current assets due from affiliates(b)28 LIABILITIESCurrent liabilities$5,563 Current liabilities due to affiliates(a)1,924 Non-current liabilities22,846 Non-current liabilities due to affiliates(b)194 

(a)    Represents receivables and short-term lending due from and payables and short-term lending due to non-guarantor subsidiaries.

(b)    Represents long-term lending due from and long-term borrowings due to non-guarantor subsidiaries.

Commodity Trends

We purchase and use large quantities of commodities, including dairy products, meat products, tomato products, sugar and other sweeteners, soybean and vegetable oils, coffee beans, wheat and processed grains, eggs, and other fruits and vegetables to manufacture our products. In addition, we purchase and use significant quantities of plastics, cardboard, resin, glass, and metal to package our products, and we use electricity, diesel fuel, and natural gas in the manufacturing and distribution of our products. We continuously monitor worldwide supply and cost trends of these commodities.

During the year ended December 28, 2024, we experienced increases in certain commodity costs, particularly for tomato products, and soybean and vegetable oils, while costs for dairy products and coffee decreased. We manage commodity cost volatility primarily through pricing and risk management strategies