Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 173

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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 Ended June 29, 2024:

Net sales decreased 5.2% to $9.2 billion for the six months ended June 28, 2025 compared to $9.7 billion for the six months ended June 29, 2024, including the unfavorable impacts of foreign currency (0.4 pp). Organic Net Sales decreased 4.8% to $9.3 billion for the six months ended June 28, 2025 compared to $9.7 billion for the six months ended June 29, 2024, primarily due to unfavorable volume/mix (5.2 pp), which more than offset higher pricing (0.4 pp). Unfavorable volume/mix was primarily driven by declines in cold cuts, coffee, Lunchables, and desserts. Higher pricing was taken in certain categories to mitigate higher input costs, primarily in coffee.

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Segment Adjusted Operating Income decreased 11.0% to $2.3 billion for the six months ended June 28, 2025 compared to $2.6 billion for the six months ended June 29, 2024, primarily due to unfavorable volume/mix, increased commodity cost inflation, which more than offset our efficiency initiatives, higher depreciation expense, higher research and development costs, and the unfavorable impact of foreign currency (0.2 pp). These unfavorable impacts to Segment Adjusted Operating Income more than offset decreased SG&A, primarily due to decreased advertising expenses, lower variable compensation expense, and higher pricing.

International Developed Markets:

For the Three Months EndedFor the Six Months EndedJune 28, 2025June 29, 2024% ChangeJune 28, 2025June 29, 2024% Change(in millions)(in millions)Net sales$897 $885 1.3 %$1,714 $1,740 (1.5)%Organic Net Sales(a)866 885 (2.2)%1,706 1,740 (2.0)%Segment Adjusted Operating Income136 126 8.2 %263 262 0.3 %

(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 June 28, 2025 Compared to the Three Months Ended June 29, 2024:

Net sales increased 1.3% to $897 million for the three months ended June