Company: KHC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001637459-25-000061
Chunk: 109

Company: Kraft Heinz Co
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 pp(0.1) pp(4.7)%0.9 pp(5.6) pp

Adjusted Operating Income:

For the Three Months EndedMarch 29, 2025March 30, 2024(in millions)Segment Adjusted Operating Income:North America$1,101 $1,215 International Developed Markets127 136 Emerging Markets99 82 General corporate expenses(128)(168)Restructuring activities(4)3 Unrealized gains/(losses) on commodity hedges1 34 Operating income/(loss)1,196 1,302 Interest expense229 226 Other expense/(income)(51)47 Income/(loss) before income taxes$1,018 $1,029 

North America:

For the Three Months EndedMarch 29, 2025March 30, 2024% Change(in millions)Net sales$4,488 $4,828 (7.0)%Organic Net Sales(a)4,515 4,828 (6.5)%Segment Adjusted Operating Income1,101 1,215 (9.4)%

(a)    Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section at the end of this item. 

Three Months Ended March 29, 2025 Compared to the Three Months Ended March 30, 2024:

Net sales decreased 7.0% to $4.5 billion for the three months ended March 29, 2025 compared to $4.8 billion for the three months ended March 30, 2024, including the unfavorable impacts of foreign currency (0.5 pp). Organic Net Sales decreased 6.5% to $4.5 billion for the three months ended March 29, 2025 compared to $4.8 billion for the three months ended March 30, 2024, primarily due to unfavorable volume/mix (7.1 pp), which more than offset higher pricing (0.6 pp). Unfavorable volume/mix was primarily driven by declines in cream cheese, Meats, and Desserts due, in part, to the shift in Easter timing, as well as declines in Lunchables and Coffee. Higher pricing was taken in certain categories to mitigate higher input costs, primarily in coffee.

Segment Adjusted Operating Income decreased 9.4% to $1.1 billion for the three months ended March