Affirms Full Year 2021 Outlook
The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the
“Company”) will today discuss progress the Company is making
against its transformation plan at the 2021 Barclays Global
Consumer Staples Conference. Chief Executive Officer Miguel
Patricio, U.S. Zone President Carlos Abrams-Rivera, and Global
Chief Financial Officer Paulo Basilio will detail how the Company
is successfully navigating the current environment to generate
sustainable shareholder value.
"In the last 18 months, we have taken bold actions to reshape
our entire company and reignite growth – and we’re far from done,”
said Patricio. “Our strategy to bring agility to our significant
scale is working, with our operating model proving strong as we
navigate both the pandemic and inflation. We are turning around
iconic brands to fuel families who are enjoying more meals together
at home. And we are pivoting to future growth by investing in top
talent and focusing on consumer needs and our Taste Elevation
platform in markets around the world."
Better Meeting Consumer Needs
In describing how the Company is driving its U.S. business
forward, Abrams-Rivera provided, “Everything we’re doing is with
today’s modern consumer in mind, and meeting their needs. This
means driving our consumer-centric, platform-based approach by
increasing our investments in marketing and sales capabilities to
expand consumption and strengthen repeat purchase rates of our
brands, and selectively restoring key retail activations, like our
back-to-school events happening now, while actively managing the
cost increases we are currently experiencing.”
The Company also disclosed that, as of today, it has increased
price in approximately two thirds of its U.S. portfolio, and is
prepared to take additional actions if input costs continue to
rise.
Outlook
Based on performance to date, the Company continues to expect to
deliver 2021 Adjusted EBITDA(1)(2) ahead of $6.1 billion.
Basilio added, “We are implementing necessary pricing actions to
manage the cost inflation we are currently seeing, including
impacts likely to carry into next year. For 2022, we expect to
sustain stronger consumption versus pre-pandemic levels and
maintain industry-leading margins as we effectively manage costs
and continue to invest in our growth strategy."
End Notes
(1)
Adjusted EBITDA is a non-GAAP financial measure. Please see
discussion of this non-GAAP financial measure at the end of this
press release for more information.
(2)
Full year 2021 guidance for Adjusted EBITDA is provided on a
non-GAAP basis only because certain information necessary to
calculate the most comparable GAAP measure is unavailable due to
the uncertainty and inherent difficulty of predicting the
occurrence and the future financial statement impact of such items
impacting comparability, including, but not limited to, the impact
of restructuring activities, deal costs, unrealized losses/(gains)
on commodity hedges, impairment losses, certain non-ordinary course
legal and regulatory matters, and equity award compensation
expense, among other items. Therefore, as a result of the
uncertainty and variability of the nature and amount of future
adjustments, which could be significant, the Company is unable to
provide a reconciliation of this measure without unreasonable
effort.
Webcast Information
A fireside chat at the Barclays Global Consumer Staples
Conference with the three executives will begin at 9:20 a.m.
Eastern Time today, and a live webcast will be available at
ir.kraftheinzcompany.com. A replay will be accessible after the
event at ir.kraftheinzcompany.com.
ABOUT THE KRAFT HEINZ COMPANY
We are driving transformation at The Kraft Heinz Company
(Nasdaq: KHC), inspired by our Purpose, Let’s Make Life Delicious.
Consumers are at the center of everything we do. With 2020 net
sales of approximately $26 billion, we are committed to growing our
iconic and emerging food and beverage brands on a global scale. We
leverage our scale and agility to unleash the full power of Kraft
Heinz across a portfolio of six consumer-driven product platforms.
As global citizens, we’re dedicated to making a sustainable,
ethical impact while helping feed the world in healthy, responsible
ways. Learn more about our journey by visiting
www.kraftheinzcompany.com or following us on LinkedIn and
Twitter.
Forward-Looking Statements
This press release contains a number of forward-looking
statements. Words such as “plan,” "believe," "anticipate,"
"reflect," "invest," "see," "make," "expect," "deliver," "drive,"
“improve,” “intend,” "assess," "remain," "evaluate," “establish,”
“focus,” “build,” “turn,” “expand,” “leverage,” "grow," "will," and
variations of such words and similar future or conditional
expressions are intended to identify forward-looking statements.
Examples of forward-looking statements include, but are not limited
to, statements regarding the Company's plans, impacts of accounting
standards and guidance, growth, legal matters, taxes, costs and
cost savings, impairments, dividends, expectations, investments,
innovations, opportunities, capabilities, execution, initiatives,
and pipeline. These forward-looking statements reflect management's
current expectations and are not guarantees of future performance
and are subject to a number of risks and uncertainties, many of
which are difficult to predict and beyond the Company's
control.
Important factors that may affect the Company's business and
operations and that may cause actual results to differ materially
from those in the forward-looking statements include, but are not
limited to, the impacts of COVID-19 and government and consumer
responses; operating in a highly competitive industry; the
Company’s ability to correctly predict, identify, and interpret
changes in consumer preferences and demand, to offer new products
to meet those changes, and to respond to competitive innovation;
changes in the retail landscape or the loss of key retail
customers; changes in the Company's relationships with significant
customers or suppliers, or in other business relationships; the
Company’s ability to maintain, extend, and expand its reputation
and brand image; the Company’s ability to leverage its brand value
to compete against private label products; the Company’s ability to
drive revenue growth in its key product categories or platforms,
increase its market share, or add products that are in
faster-growing and more profitable categories; product recalls or
other product liability claims; the Company’s ability to identify,
complete, or realize the benefits from strategic acquisitions,
alliances, divestitures, joint ventures, or other investments; the
Company's ability to successfully execute its strategic
initiatives; the impacts of the Company's international operations;
the Company's ability to protect intellectual property rights; the
Company's ownership structure; the Company’s ability to realize the
anticipated benefits from prior or future streamlining actions to
reduce fixed costs, simplify or improve processes, and improve its
competitiveness; the Company's level of indebtedness, as well as
our ability to comply with covenants under our debt instruments;
additional impairments of the carrying amounts of goodwill or other
indefinite-lived intangible assets; foreign exchange rate
fluctuations; volatility in commodity, energy, and other input
costs; volatility in the market value of all or a portion of the
commodity derivatives we use; compliance with laws, regulations,
and related interpretations and related legal claims or other
regulatory enforcement actions; failure to maintain an effective
system of internal controls; a downgrade in the Company's credit
rating; the impact of future sales of the Company's common stock in
the public market; the Company’s ability to continue to pay a
regular dividend and the amounts of any such dividends;
unanticipated business disruptions and natural events in the
locations in which the Company or the Company's customers,
suppliers, distributors, or regulators operate; economic and
political conditions in the United States and in various other
nations where the Company does business; changes in the Company's
management team or other key personnel and the Company's ability to
hire or retain key personnel or a highly skilled and diverse global
workforce; risks associated with information technology and
systems, including service interruptions, misappropriation of data,
or breaches of security; increased pension, labor, and
people-related expenses; changes in tax laws and interpretations;
volatility of capital markets and other macroeconomic factors; and
other factors. For additional information on these and other
factors that could affect the Company's forward-looking statements,
see the Company's risk factors, as they may be amended from time to
time, set forth in its filings with the SEC. The Company disclaims
and does not undertake any obligation to update, revise, or
withdraw any forward-looking statement in this press release,
except as required by applicable law or regulation.
Non-GAAP Financial Measure
The non-GAAP financial measure provided should be viewed in
addition to, and not as an alternative for, results prepared in
accordance with accounting principles generally accepted in the
United States of America (“GAAP”) that are presented in the
Company’s filings with the SEC.
To supplement the financial information, the Company has
presented Adjusted EBITDA, which is considered a non-GAAP financial
measure. The non-GAAP financial measure presented may differ from
similarly titled non-GAAP financial measures presented by other
companies, and other companies may not define this non-GAAP
financial measure in the same way. This measure is not a substitute
for its comparable GAAP financial measure, such as net
income/(loss) or other measures prescribed by GAAP, and there are
limitations to using non-GAAP financial measures.
Management uses this non-GAAP financial measure to assist in
comparing the Company's performance on a consistent basis for
purposes of business decision making by removing the impact of
certain items that management believes do not directly reflect the
Company's underlying operations. Management believes that
presenting the Company's non-GAAP financial measure (i.e., Adjusted
EBITDA) is useful to investors because it (i) provides investors
with meaningful supplemental information regarding financial
performance by excluding certain items, (ii) permits investors to
view performance using the same tools that management uses to
budget, make operating and strategic decisions, and evaluate
historical performance, and (iii) otherwise provides supplemental
information that may be useful to investors in evaluating the
Company's results. The Company believes that the presentation of
this non-GAAP financial measure, when considered together with the
corresponding GAAP financial measure and the reconciliation to such
measure, provides investors with additional understanding of the
factors and trends affecting the Company's business than could be
obtained absent these disclosures.
Adjusted EBITDA is defined as net income/(loss) from continuing
operations before interest expense, other expense/(income),
provision for/(benefit from) income taxes, and depreciation and
amortization (excluding restructuring activities); in addition to
these adjustments, the Company excludes, when they occur, the
impacts of restructuring activities, deal costs, unrealized
losses/(gains) on commodity hedges, impairment losses, certain
non-ordinary course legal and regulatory matters, and equity award
compensation expense (excluding restructuring activities). Adjusted
EBITDA is a tool that can assist management and investors in
comparing the Company's performance on a consistent basis by
removing the impact of certain items that management believes do
not directly reflect the Company's underlying operations. In the
second quarter of 2021, the Company revised the definition of
Adjusted EBITDA to adjust for the impact of certain legal and
regulatory matters arising outside the ordinary course of its
business, as management believes such matters, when they occur, do
not directly reflect the Company's underlying operations.
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version on businesswire.com: https://www.businesswire.com/news/home/20210908005618/en/
Kathy Krenger (media) Kathy.Krenger@kraftheinz.com
Christopher Jakubik, CFA (investors) ir@kraftheinz.com
Kraft Heinz (NASDAQ:KHC)
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