Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 176

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 176
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 pp).

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

Net sales decreased 0.4% to $1.4 billion for the six months ended June 28, 2025 compared to $1.4 billion for the six months ended June 29, 2024, including the unfavorable impacts of foreign currency (5.3 pp) and divestitures (0.8 pp). Organic Net Sales increased 5.7% to $1.4 billion for the six months ended June 28, 2025 compared to $1.4 billion for the six months ended June 29, 2024, primarily driven by higher pricing (4.8 pp) and favorable volume/mix (0.9 pp). Higher pricing was taken primarily in certain countries within WEEM to address inflationary pressures. Favorable volume/mix was primarily driven by Taste Elevation within LATAM, particularly in Brazil, which more than offset unfavorable volume/mix in Indonesia.

Segment Adjusted Operating Income increased 34.5% to $199 million for the six months ended June 28, 2025 compared to $148 million for the six months ended June 29, 2024, primarily due to higher pricing, favorable volume/mix and reduced manufacturing costs, primarily as a result of our efficiency initiatives. These favorable impacts to Segment Adjusted Operating Income more than offset higher procurement and logistics costs reflecting inflationary pressure in WEEM, the unfavorable impact of foreign currency (6.5 pp), and higher depreciation expense.

Liquidity and Capital Resources

We believe that cash generated from our operating activities, commercial paper programs, and our senior unsecured revolving credit facility (the “Senior Credit Facility”) will provide sufficient liquidity to meet our working capital needs, repayments of long-term debt, future contractual obligations, payment of our anticipated quarterly dividends, planned capital expenditures, restructuring expenditures, and contributions to our postemployment benefit plans for the next 12 months. An additional potential source of liquidity is access to capital markets. We intend to use our cash on hand and commercial paper programs for daily funding requirements.

Cash Flow Activity for the Six Months Ended June 28, 2025 Compared to the Six Months Ended June 29, 2024:

Net Cash Provided by/Used for Operating Activities:

Net cash provided by operating activities was $1.9 billion for the six months ended June 28, 2025 compared to $1.7 billion for the six