Company: KHC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001637459-25-000011
Chunk: 87

Company: Kraft Heinz Co
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 87
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 primarily driven by higher pricing (8.9 pp), which more than offset unfavorable volume/mix (5.5 pp). Pricing was higher in all segments. Volume/mix in North America and International Developed Markets was unfavorable, while volume/mix in Emerging Markets was favorable.

Net Income/(Loss):

December 28, 2024December 30, 2023% ChangeDecember 30, 2023December 31, 2022% Change(in millions)(in millions)Operating income/(loss)$1,683 $4,572 (63.2)%$4,572 $3,634 25.8 %Net income/(loss)2,746 2,846 (3.5)%2,846 2,368 20.2 %Net income/(loss) attributable to common shareholders2,744 2,855 (3.9)%2,855 2,363 20.8 %Adjusted Operating Income(a)5,360 5,297 1.2 %5,297 4,989 6.2 %

(a)     Adjusted Operating Income is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. 

Fiscal Year 2024 Compared to Fiscal Year 2023:

Operating income/(loss) decreased 63.2% to $1.7 billion in 2024 compared to $4.6 billion in 2023, due to non-cash impairment losses that were $3.0 billion higher in the current year period. The remaining change to operating income/(loss) was an increase of $118 million primarily driven by higher pricing, lower variable compensation expense, and lower procurement and logistics costs, due, in part, to the beneficial impact from our efficiency initiatives. These favorable impacts to operating income/(loss) were partially offset by unfavorable volume/mix, increased manufacturing expenses due to increased labor costs, and increased selling, general and administrative expenses (“SG&A”) due, in part, to investments in technology.

Net income/(loss) decreased 3.5% to $2.7 billion in 2024 compared to $2.8 billion in 2023. This decrease was due to unfavorable changes in operating income/(loss) factors discussed above, which more than offset a lower effective tax rate in the current period and the favorable changes in other expense/(income). 

•Our effective tax rate was a benefit of 220.