The Kraft Heinz Company reported a loss of $7.82 billion, or $6.60 per share, in its second quarter of 2025, swinging from a profit in the prior year. This significant loss was primarily driven by a large impairment charge, which impacted the company's net income.
Despite beating analyst expectations for adjusted earnings per share at $0.69, the company's net sales fell by 1.9% year-over-year to $6.35 billion, missing some market estimates. This marks another quarter of sales decline, reflecting ongoing challenges in consumer demand.
CEO Carlos Abrams-Rivera remained tight-lipped on providing new perspective on the 'strategic transactions' revealed in May, but the company affirmed its full-year 2025 targets. These include adjusted EPS of between $2.51 and $2.67, adjusted operating profit down 5% to 10% at constant exchange rates, and organic sales down 1.5% to 3.5%.
The company noted resilient demand for its pantry staples and condiments in the United States, as consumers increasingly cook more affordable meals at home due to sticky inflation and economic uncertainty. However, organic sales declined in North America and international developed markets, while emerging markets showed an increase.
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