Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 137

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 137
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 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 28, 2025 compared to $885 million for the three months ended June 29, 2024, including the favorable impacts of foreign currency (3.5 pp). Organic Net Sales decreased 2.2% to $866 million for the three months ended June 28, 2025 compared to $885 million for the three months ended June 29, 2024, primarily due to unfavorable volume/mix (2.9 pp), which more than offset higher pricing (0.7 pp). Unfavorable volume/mix was primarily due to pricing elasticity in New Zealand and industry slowdowns in meals in the United Kingdom.

Segment Adjusted Operating Income increased 8.2% to $136 million for the three months ended June 28, 2025 compared to $126 million for the three months ended June 29, 2024, primarily driven by decreased SG&A, the favorable impact of foreign currency (5.7 pp), and higher pricing, which more than offset unfavorable volume