Company: KHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001637459-25-000152
Chunk: 66

Company: Kraft Heinz Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 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.

39

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

Net sales increased 4.2% to $698 million for the three months ended June 28, 2025 compared to $670 million for the three months ended June 29, 2024, including the unfavorable impacts of foreign currency (3.1 pp) and divestitures (0.3 pp). Organic Net Sales increased 7.6% to $701 million for the three months ended June 28, 2025 compared to $652 million for the three months ended June 29, 2024, primarily driven by higher pricing (5.2 pp) and favorable volume/mix (2.4 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 our LATAM and Middle East and Africa (“MEA”) regions, which more than offset unfavorable volume/mix in certain countries within our Eastern Europe region.

Segment Adjusted Operating Income increased 52.3% to $100 million for the three months ended June 28, 2025