Kraft Heinz's growth has accelerated in the wake of very strong consumer demand for its products and trusted brands, despite significant declines in foodservice-related sales around the world. Net sales are now expected to increase approximately 3% and Organic Net Sales(1) are expected to increase approximately 6%. The difference between expected net sales and Organic Net Sales is primarily attributable to prior year divestitures and currency impacts. This compares to previous expectations for a low single-digit rate of decline in Organic Net Sales versus the prior year.
At the same time, the company does not expect the full benefit from incremental sales in the quarter to flow through to net income/(loss) from continuing operations, Adjusted EBITDA(1), or earnings per share due to added expenses to meet this accelerated growth in addition to headwinds previously disclosed on its February earnings call.
The company expects to release its first quarter 2020 financial results on Thursday, April 30, 2020, before the market opens. Kraft Heinz management will host a conference call at 8:30 a.m. Eastern Daylight Time that day to review and discuss its results, offer a brief preview of the topics that will be unveiled during our Investor Day and conduct a question-and-answer session with analysts.
The earnings release and live audio webcast of Kraft Heinz’s earnings conference call can be accessed on April 30 at ir.kraftheinzcompany.com. A replay of the webcast will be available following the conference call through the same website.
Response to the Outbreak
As the COVID-19 situation evolves, Kraft Heinz leadership will continue to evaluate and adapt as needed to ensure the health and safety of its employees and support for our consumers.
“Right now, our mission as a company has never been clearer: we have a huge responsibility to keep feeding the world,” said CEO Miguel Patricio. “Each leader on our team is focused on making the company and our global business as flexible and agile as possible to meet demand forecasts that are changing daily – and sometimes, hour by hour. We are inspired by our employees on the front lines – in our manufacturing plants and distribution centers, which all remain operational, and our in-store sales teams – who are working tirelessly each day to meet the demand and make sure consumers have the food and nourishment they need during these uncertain times.”
As announced on March 20, Kraft Heinz is donating $12 million globally to ensure people across the world have the food they need during this challenging time. As part of this commitment, the company is making a donation valued at $6.6 million to Feeding America, the largest domestic hunger relief organization in the United States, to help support food banks located near Kraft Heinz offices and plants. The Feeding America donation consists of $1.9 million in cash and $4.7 million in products like Kraft Macaroni & Cheese.
Rescheduling Investor Day
The company announced today that it is postponing its in-person Investor Day planned for early May to support safe, social-distancing initiatives and will reschedule it at an appropriate time and place – ideally in the second half of 2020 once travel and meeting restrictions are lifted.
At this event, senior leaders from the company plan to share their long-term vision and priorities for the business in-person with analysts, investors and media, and unveil in more detail the new strategic plan and go-to market structure for the business that is currently being put into place.
“We have been developing a powerful new strategy, transforming our capabilities and making needed investments in the business for months,” Patricio explained. “Our strong execution in the face of this crisis reflects the exceptional progress our people have been making. We have also been looking forward to sharing our new vision and long-term growth framework in-person with investors and all our external stakeholders. But given the current, unprecedented COVID-19 challenge, we believe it is better for Kraft Heinz, our shareholders and our customers that we continue our single-minded focus on getting our products from our plants to stores and onto consumers’ tables.”
(1) Organic Net Sales and Adjusted EBITDA are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.
ABOUT THE KRAFT HEINZ COMPANY
For 150 years, we have produced some of the world’s most beloved products. Our Vision is To Be the Best Food Company, Growing a Better World. We are one of the largest global food and beverage companies, with 2019 net sales of approximately $25 billion. Our portfolio is a diverse mix of iconic and emerging brands. As the guardians of these brands and the creators of innovative new products, we are dedicated to the sustainable health of our people and our planet.
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