The Kraft Heinz Company

Latest Results (01.09.2026):

The Kraft Heinz Company reported results for the second quarter of 2026. Net sales were $6,262 million, down 1.4% (Organic Net Sales down 1.3%). The quarter included large non‑cash impairment charges that produced an operating loss of $(6.4) billion, while Adjusted Operating Income was $1,041 million. The company generated strong cash flow (year‑to‑date net cash from operations $2.1 billion; Free Cash Flow $1.7 billion) and updated its 2026 outlook while increasing incremental brand investments to about $700 million.

Net sales and organic growth

Q2 2026 net sales were $6,262M, down 1.4% vs. Q2 2025; Organic Net Sales decreased 1.3%. Price contributed +1.3 percentage points while volume/mix declined 2.6 points. By region: Emerging Markets grew +10.4%, North America declined (−2.7%), International Developed Markets declined (−3.5%).

Gross profit and margins

Reported gross profit fell to $2,028M and gross profit margin decreased 200 basis points to 32.4%. Adjusted Gross Profit Margin was flat at 34.1% (Adjusted Gross Profit $2,136M), reflecting pricing offset by higher input, manufacturing and logistics costs and unfavorable volume/mix.

Operating results and impairments

Operating loss was $(6,431)M, an improvement vs. prior year driven by lower non‑cash impairment losses (total impairment losses of $7,352M in Q2). On an adjusted basis, Adjusted Operating Income declined 18.4% to $1,041M, pressured by higher advertising, inflationary costs, unfavorable volume/mix and higher variable compensation.

Net income and EPS

The Kraft Heinz Company recorded a net loss of $(5,460)M for Q2 2026 (diluted EPS $(4.60), improved vs. $(6.60) year ago). Adjusted EPS was $0.56, down 18.8% vs. prior year reflecting lower adjusted operating income.

Cash flow and capital return

Year‑to‑date net cash provided by operating activities was $2.1B (up 8.2%), Free Cash Flow was $1.7B (up 10.3%) and Free Cash Flow Conversion improved to 123%. Year‑to‑date cash dividends paid totaled $949M; the company did not repurchase shares under its repurchase program in the period.

Segments and drivers

Price increases helped offset higher input costs (notably coffee and ready‑to‑drink beverages). Volume declines were driven by meats and spoonables and timing shifts (Easter timing ~100 bps headwind), partially offset by inventory pull‑forward (~80 bps benefit). Emerging Markets notably outperformed other regions.

Outlook and guidance (updated)

For fiscal 2026 the company now expects Organic Net Sales down 0.5% to down 2.0%, Constant Currency Adjusted Operating Income down 16%–18%, Adjusted Gross Profit Margin down 10–50 bps, and Adjusted EPS of $2.03–$2.09. Free Cash Flow Conversion is expected to be ~110%.

Investments and priorities

Management announced an increase in incremental brand investments by $100M to approximately $700M in 2026 to support brands and drive volume‑led growth. Management reaffirmed focus on returning the business to sustainable, volume‑led profitable growth.