Kraft Heinz Reports Fiscal Year Results, Cites Impairment Losses
The Kraft Heinz Company (KHC) has released its fiscal year 2025 results, reporting net sales of $24.94 billion, a 3.5% decrease compared to $25.85 billion in 2024. The company attributed the decline to unfavorable volume/mix, which outweighed higher pricing across all segments. Organic Net Sales, a non-GAAP measure, also decreased by 3.4% to $24.89 billion.
A significant factor impacting the company's financial performance was a substantial increase in impairment losses. Operating income shifted to a loss of $4.67 billion, a 377.4% decrease from the $1.68 billion income reported in the previous year. This was primarily due to $9.3 billion in non-cash impairment losses, compared to $3.67 billion in 2024. Adjusted Operating Income, excluding these and other specific items, decreased by 11.5% to $4.75 billion. Net loss attributable to common shareholders was $5.85 billion, or $4.93 per diluted share, compared to net income of $2.74 billion, or $2.26 per diluted share, in the prior year. Adjusted EPS, a non-GAAP measure, was $2.60, down 15.0% from $3.06 in 2024.
Strategic developments during the year included the announcement of a plan to separate the company into two independent publicly traded entities, which has since been paused. The company also completed the sale of its infant and specialty food business in Italy for approximately $146 million. There were no significant changes in customer counts or user statistics reported. The company's largest customer, Walmart Inc., accounted for approximately 21% of net sales in 2025, 2024, and 2023.
Looking ahead, Kraft Heinz anticipates moderating inflationary trends in 2026, although significant uncertainty remains. The company expects capital expenditures of approximately $950 million in the coming year. The Board of Directors declared a cash dividend of $0.40 per share, payable on March 27, 2026. The company's share repurchase program has approximately $1.5 billion remaining authorization as of December 27, 2025.
About Kraft Heinz Co
The Kraft Heinz Company is a global food and beverage manufacturer focused on iconic and emerging brands across multiple product platforms, including condiments, meals, snacks, desserts, beverages, cheese, and meats. Serving retail, foodservice, and institutional customers worldwide, it leverages scale, innovation, and brand strength to compete in highly competitive markets, emphasizing consumer preferences, sustainability, and operational efficiency.
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