Kraft Heinz reported third‑quarter 2025 results with net sales of $6.24 billion, a 2.3% decline year‑over‑year, and organic net sales of $6.237 billion, down 2.5% YoY. Adjusted earnings per share were $0.61, beating the consensus estimate of $0.58, while adjusted operating income fell 16.9% to $1.11 billion. Gross‑profit margin contracted 230 basis points to 31.9%.
Segment performance showed North America net sales falling 3.8%, International Developed Markets growing 1.6%, and Emerging Markets expanding 3.8% (excluding Indonesia, which declined). The company noted that Indonesia contributed to the overall revenue decline, while other emerging markets posted solid growth.
The company tightened its full‑year outlook, narrowing the adjusted EPS range to $2.50–$2.57 from $2.51–$2.67 and cutting the organic revenue guidance to a 3.0%–3.5% decline from the prior 1.5%–3.5% range. Adjusted operating profit is expected to decline 10%–12% at constant exchange rates.
Operating cash flow increased to $3.09 billion, up 10.4% year‑to‑date, and free cash flow was $2.49 billion. Kraft Heinz continues to invest in marketing and research and development to strengthen its brands.
The company reiterated its plan to separate into two independent, publicly traded entities in the second half of 2026, a move intended to unlock value and sharpen focus on distinct markets.
Management highlighted margin compression driven by commodity and manufacturing cost inflation that outpaced efficiency initiatives. The company cited consumer trade‑down in U.S. retail and pressure in Indonesia as key factors behind the revenue decline, while emphasizing ongoing cost‑control efforts and brand investment.
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