Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 138

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 138
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/mix.

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

Net sales decreased 1.5% to $1.7 billion for the six months ended June 28, 2025 compared to $1.7 billion for the six months ended June 29, 2024, including the favorable impacts of foreign currency (0.5 pp). Organic Net Sales decreased 2.0% to $1.7 billion for the six months ended June 28, 2025 compared to $1.7 billion for the six months ended June 29, 2024, primarily due to unfavorable volume/mix (2.2 pp), which more than offset higher pricing (0.2 pp). Unfavorable volume/mix was primarily due to industry slowdowns of meals in the United Kingdom.

Segment Adjusted Operating Income increased 0.3% to $263 million for the six months ended June 28, 2025 compared to $262 million for the six months ended June 29, 2024, primarily driven by decreased SG&A, primarily for advertising expenses, the favorable impact of foreign currency (2.1 pp), and higher pricing, partially offset by unfavorable volume/mix and inflationary pressures in manufacturing and procurement, which more than offset our efficiency initiatives.

Emerging 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$698 $670 4.2 %$1,392 $1,398 (0.4)%Organic Net Sales(a)701 652 7.6 %1,429 1,352 5.7 %Segment Adjusted Operating Income(b)100 66 52.3 %199 148 34.5 %

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

(b)    Segment Adjusted Operating Income for Emerging Markets, which represents the combination of our WEEM and AEM operating segments, is defined and presented consistently with the Segment Adjusted Operating Income of our reportable segments - North America and International Developed Markets.

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Three Months Ended June 28, 2025 Compared to the Three Months Ended June