Kraft Heinz Reports Fourth Quarter and Full Year 2025 Results

PITTSBURGH & CHICAGO--( BUSINESS WIRE)--The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) today reported financial results for the fourth quarter and full year 2025 and introduced its 2026 operating plan.

“When I decided to join Kraft Heinz, I knew that this was an exciting opportunity to contemporize iconic brands, better serve consumers and customers, and build meaningful shareholder value.” said Steve Cahillane, CEO of Kraft Heinz. “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control. My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year.”

Cahillane continued, “In order to accelerate the momentum we are already seeing in our Taste Elevation portfolio and to drive recovery in our U.S. business, we are today announcing a $600 million investment across Marketing, Sales, and R&D as well as product superiority and select pricing. Thanks to disciplined financial stewardship, our balance sheet is strong and our Free Cash Flow capabilities, robust – positioning us well to fund these investments and execute on the plan, while still generating excess cash. We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth.”

“Kraft Heinz is already seeing the benefit of Steve’s deep industry experience and proven track record of building brands and leading large-scale transformations,” said John T. Cahill, Chair of Kraft Heinz’s Board. “From day one, he has brought a fresh, consumer-first perspective that we believe creates a clear glidepath back to profitable growth. We are confident that our decision to pause the work related to the separation and fully focusing our resources in service of growth is the right move at this time. We remain excited about the road ahead for Kraft Heinz.”

Net Sales

In millions

Net Sales

Organic Net Sales (1)

December 27,

2025

December 28,

2024

% Chg vs

YoY Growth

Rate

Price

Volume/

Mix

For the Three Months Ended

North America

4,700

4,968

(5.4)%

0.0 pp

(5.4) pp

International Developed Markets

930

913

1.8%

(2.4)%

1.8 pp

(4.2) pp

Emerging Markets (a)

724

695

4.3%

2.2%

2.4 pp

(0.2) pp

Kraft Heinz

6,354

6,576

(3.4)%

(4.2)%

0.5 pp

(4.7) pp

For the Year Ended

North America

18,586

19,543

(4.9)%

(4.7)%

0.3 pp

(5.0) pp

International Developed Markets

3,539

3,535

0.1%

(1.9)%

0.9 pp

(2.8) pp

Emerging Markets (a)

2,817

2,768

1.8%

4.6%

4.0 pp

0.6 pp

Kraft Heinz

24,942

25,846

(3.5)%

(3.4)%

0.7 pp

(4.1) pp

(a) Emerging Markets represents the aggregation of our WEEM and AEM operating segments.

Net Income/(Loss) and Diluted EPS

In millions, except per share data

For the Three Months Ended

For the Year Ended

December 27,

2025

December 28,

2024

% Chg vs

December 27,

2025

December 28,

2024

% Chg vs

Gross profit

2,072

2,245

(7.7)%

8,309

8,968

(7.3)%

Operating income/(loss)

1,084

(40)

2,810.0%

(4,669)

1,683

(377.4)%

Net income/(loss)

648

2,132

(69.6)%

(5,848)

2,746

(313.0)%

Net income/(loss) attributable to common shareholders

651

2,131

(69.5)%

(5,846)

2,744

(313.0)%

Diluted EPS

0.55

1.76

(68.8)%

(4.93)

2.26

(318.1)%

Adjusted EPS (1)

0.67

0.84

(20.2)%

2.60

3.06

(15.0)%

Adjusted Operating Income (1)

1,164

1,385

(15.9)%

4,745

5,360

(11.5)%

FY 2025 Financial Summary

Q4 2025 Financial Summary

Outlook

For fiscal year 2026, the Company expects:

End Notes

Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted EPS, Free Cash Flow, Free Cash Flow Conversion, and Net Leverage are non-GAAP financial measures. Please see discussion of non-GAAP financial measures and the reconciliations at the end of this press release for more information.

Guidance for Organic Net Sales, Adjusted Gross Profit Margin, Constant Currency Adjusted Operating Income, Adjusted EPS, Free Cash Flow, and Free Cash Flow Conversion 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 currency, acquisitions and divestitures, divestiture-related license income, restructuring activities, deal costs, separation costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, equity award compensation expense, nonmonetary currency devaluation, and debt prepayment and extinguishment (benefit)/costs, 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 these measures without unreasonable effort.

Earnings Discussion and Webcast Information

A pre-recorded management discussion of The Kraft Heinz Company's fourth quarter and full year 2025 earnings is available at ir.kraftheinzcompany.com. The Company will host a live question and answer session beginning today at 9:00 a.m. Eastern Standard Time. A webcast of the session will be accessible 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 2025 net sales of approximately $25 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 eight 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.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as “accelerate,” “anticipate,” “believe,” “commit,” “continue,” “expect,” “will,” “guidance,” and “outlook,” 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, and dividends, as well as statements regarding the previously announced separation of Kraft Heinz into two independently publicly traded companies, including the timing and structure of such separation, the pause of work related to the separation, the ability to effect the separation and to meet the condition thereto, the characteristics of the separated businesses and the expected benefits of the separation, if completed. 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, 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 effect the previously announced separation of Kraft Heinz into two independent publicly traded companies and to meet the conditions related thereto, including obtaining applicable regulatory approvals, if work related to the separation is resumed; negative effects of the announcement pendency of the separation, including the current pause on work related to the separation, on the market price of the Company’s securities and/or on the Company’s financial performance; uncertainty of the financial performance of the separated companies following completion of the separation; the ability of the separated companies to each succeed as a standalone publicly traded company following the separation; the possibility that the separation will not achieve its intended benefits, if completed; the possibility of disruption, including changes to existing business relationships, disputes, litigation or unanticipated costs in connection with the separation and uncertainty related thereto; the impact of the separation on the Company’s businesses and the risk that the separation may be more difficult, time-consuming or costly than expected, including the impact on the Company’s resources, systems, procedures and controls and diversion of management’s attention and the impact and possible disruption of existing relationships with regulators, customers, suppliers, employees and other business counterparties; the Company’s ability to achieve anticipated capital structures in connection with the separation, including the future availability of credit and factors that may affect such availability; the Company’s ability to achieve anticipated credit ratings in connection with the separation; the Company’s ability to achieve anticipated tax treatments in connection with the separation and future, if any, divestitures, mergers, acquisitions and other portfolio changes and the impact of changes in relevant tax and other laws and regulations; the uncertainty of obtaining regulatory approvals in connection with the separation; 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; climate change and legal or regulatory responses; the Company’s ability to identify, complete, or realize the benefits from strategic acquisitions, divestitures, alliances, joint ventures, or 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 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 influence of the Company's largest stockholder; 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 and regulations and related legal claims or regulatory enforcement actions; failure to maintain an effective system of internal controls; a downgrade in the Company's credit rating; the impact of sales of the Company's common stock in the public market; the impact of the Company’s share repurchases or any change in the Company’s share repurchase activity; the Company’s ability to continue to pay a regular dividend and the amounts of any such dividends; disruptions in the global economy caused by geopolitical conflicts, 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 (including inflationary pressures, the imposition of increased or new tariffs, instability in financial institutions, general economic slowdown, recession, or a potential U.S. federal government shutdown); 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; our dependence on 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 and the final determination of tax audits, including transfer pricing matters, and any related litigation; 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 Securities and Exchange Commission (“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.

We use our investor relations website, ir.kraftheinzcompany.com, as a routine channel for distribution of important, and often material, information about Kraft Heinz, including quarterly and annual earnings results and presentations, press releases and other announcements, webcasts, analyst presentations, investor days, sustainability initiatives, financial information, and corporate governance practices, as well as archives of past presentations and events. We encourage you to follow our investor relations website in addition to our filings with the SEC to receive timely information about the Company. The information on our website is not part of this press release and shall not be deemed to be incorporated by reference into any filings we make with the SEC.

Non-GAAP Financial Measures

The non-GAAP financial measures provided in this press release 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”).

To supplement the financial information provided, the Company has presented Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income/(Loss), Adjusted EPS, Free Cash Flow, and Net Leverage which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net sales, net income/(loss), gross profit, diluted earnings per share (“EPS”), net cash provided by/(used for) operating activities, or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.

Management uses these non-GAAP financial measures 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. The Company believes:

Management believes that presenting the Company’s non-GAAP financial measures 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 these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting the Company’s business than could be obtained absent these disclosures.

Definitions

Organic Net Sales is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. The Company calculates the impact of currency on net sales by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which the Company calculates the previous year's results using the current year's exchange rate.

Adjusted Operating Income is defined as operating income/(loss) excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters. The Company also presents Adjusted Operating Income on a constant currency basis (Constant Currency Adjusted Operating Income). The Company calculates the impact of currency on Adjusted Operating Income by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which it calculates the previous year's results using the current year's exchange rate.

Adjusted Gross Profit, Adjusted Net Income/(Loss), and Adjusted EPS are defined as gross profit, net income/(loss), and diluted earnings per share, respectively, excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, losses/(gains) on the sale of a business, other losses/(gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment (benefit)/costs, and certain significant discrete income tax items, and including when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis. Adjusted Gross Profit Margin is defined as Adjusted Gross Profit divided by net sales.

Net Leverage is defined as debt less cash, cash equivalents and short-term investments divided by Adjusted EBITDA. 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 divestiture-related license income, restructuring activities, deal costs, separation 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).

Free Cash Flow is defined as net cash provided by/(used for) operating activities less capital expenditures. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.

Schedule 1

The Kraft Heinz Company

Consolidated Statements of Income

(in millions, except per share data)

(Unaudited)

For the Three Months Ended

For the Year Ended

December 27,

2025

December 28,

2024

December 27,

2025

December 28,

2024

Net sales

6,354

6,576

24,942

25,846

Cost of products sold

4,282

4,331

16,633

16,878

Gross profit

2,072

2,245

8,309

8,968

Selling, general and administrative expenses, excluding impairment losses

983

898

3,672

3,616

Goodwill impairment losses

6,734

1,638

Intangible asset impairment losses

—

1,310

2,572

2,031

Selling, general and administrative expenses

988

2,285

12,978

7,285

Operating income/(loss)

1,084

(40)

(4,669)

1,683

Interest expense

238

227

947

912

Other expense/(income)

(51)

(29)

(171)

(85)

Income/(loss) before income taxes

897

(238)

(5,445)

856

Provision for/(benefit from) income taxes

249

(2,370)

403

(1,890)

Net income/(loss)

648

2,132

(5,848)

2,746

Net income/(loss) attributable to noncontrolling interest

(3)

(2)

Net income/(loss) attributable to common shareholders

651

2,131

(5,846)

2,744

Basic shares outstanding

1,184

1,203

1,187

1,210

Diluted shares outstanding

1,187

1,207

1,187

1,215

Per share data applicable to common shareholders:

Basic earnings/(loss) per share

0.55

1.77

(4.93)

2.27

Diluted earnings/(loss) per share

0.55

1.76

(4.93)

2.26

Schedule 2

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

Net Sales

Currency

Organic Net

Sales

Price

Volume/Mix

December 27, 2025

North America

4,700

—

4,700

International Developed Markets

930

891

Emerging Markets (a)

724

686

Kraft Heinz

6,354

6,277

December 28, 2024

North America

4,968

—

4,968

International Developed Markets

913

—

913

Emerging Markets (a)

695

671

Kraft Heinz

6,576

6,552

Year-over-year growth rates

North America

(5.4)%

0.0 pp

(5.4)%

0.0 pp

(5.4) pp

International Developed Markets

1.8%

4.2 pp

(2.4)%

1.8 pp

(4.2) pp

Emerging Markets (a)

4.3%

2.1 pp

2.2%

2.4 pp

(0.2) pp

Kraft Heinz

(3.4)%

0.8 pp

(4.2)%

0.5 pp

(4.7) pp

(a) Emerging Markets represents the aggregation of our WEEM and AEM operating segments.

Schedule 3

The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Year Ended

(dollars in millions)

(Unaudited)

Net Sales

Currency

Acquisitions

and

Divestitures

Organic Net

Sales

Price

Volume/Mix

December 27, 2025

North America

18,586

(35)

—

18,621

International Developed Markets

3,539

—

3,466

Emerging Markets

2,817

—

2,802

Kraft Heinz

24,942

—

24,889

December 28, 2024

North America

19,543

—

19,543

International Developed Markets

3,535

—

3,535

Emerging Markets

2,768

2,678

Kraft Heinz

25,846

25,756

Year-over-year growth rates

North America

(4.9)%

(0.2) pp

0.0 pp

(4.7)%

0.3 pp

(5.0) pp

International Developed Markets

0.1%

2.0 pp

0.0 pp

(1.9)%

0.9 pp

(2.8) pp

Emerging Markets

1.8%

(2.4) pp

(0.4) pp

4.6%

4.0 pp

0.6 pp

Kraft Heinz

(3.5)%

(0.1) pp

0.0 pp

(3.4)%

0.7 pp

(4.1) pp

Schedule 4

The Kraft Heinz Company

Reconciliation of Operating Income/(Loss) to Adjusted Operating Income

(dollars in millions)

(Unaudited)

For the Three Months Ended

For the Year Ended

December 27,

2025

December 28,

2024

December 27,

2025

December 28,

2024

Operating income/(loss)

1,084

(40)

(4,669)

1,683

Restructuring activities

Unrealized losses/(gains) on commodity hedges

(19)

Impairment losses

1,387

9,306

3,669

Separation costs

—

Adjusted Operating Income

1,164

1,385

4,745

5,360

Segment Adjusted Operating Income:

North America

1,097

1,318

4,389

5,111

International Developed Markets

150

140

543

537

Total Segment Adjusted Operating Income

1,247

1,458

4,932

5,648

Emerging Markets

341

321

General corporate expenses

(146)

(162)

(528)

(609)

Adjusted Operating Income

1,164

1,385

4,745

5,360

Schedule 5

The Kraft Heinz Company

Reconciliation of Adjusted Operating Income to Constant Currency Adjusted Operating Income

For the Three Months Ended

(dollars in millions)

(Unaudited)

Adjusted Operating

Income

Currency

Constant Currency

Adjusted Operating

Income

December 27, 2025

North America

1,097

—

1,097

International Developed Markets

150

143

Emerging Markets

General corporate expenses

(146)

(4)

(142)

Kraft Heinz

1,164

1,157

December 28, 2024

North America

1,318

—

1,318

International Developed Markets

140

—

140

Emerging Markets

General corporate expenses

(162)

—

(162)

Kraft Heinz

1,385

1,377

Year-over-year growth rates

North America

(16.8)%

0.0 pp

(16.8)%

International Developed Markets

6.6%

4.5 pp

2.1%

Emerging Markets

(28.8)%

(1.9) pp

(26.9)%

General corporate expenses

(10.1)%

2.1 pp

(12.2)%

Kraft Heinz

(15.9)%

0.1 pp

(16.0)%

Schedule 6

The Kraft Heinz Company

Reconciliation of Adjusted Operating Income to Constant Currency Adjusted Operating Income

For the Year Ended

(dollars in millions)

(Unaudited)

Adjusted Operating

Income

Currency

Constant Currency

Adjusted Operating

Income

December 27, 2025

North America

4,389

(6)

4,395

International Developed Markets

543

525

Emerging Markets

341

335

General corporate expenses

(528)

(8)

(520)

Kraft Heinz

4,745

4,735

December 28, 2024

North America

5,111

—

5,111

International Developed Markets

537

—

537

Emerging Markets

321

302

General corporate expenses

(609)

—

(609)

Kraft Heinz

5,360

5,341

Year-over-year growth rates

North America

(14.1)%

(0.1) pp

(14.0)%

International Developed Markets

1.0%

3.2 pp

(2.2)%

Emerging Markets

6.2%

(4.5) pp

10.7%

General corporate expenses

(13.6)%

1.0 pp

(14.6)%

Kraft Heinz

(11.5)%

(0.1) pp

(11.4)%

Schedule 7

The Kraft Heinz Company

Reconciliation of GAAP Results to Non-GAAP Results

(dollars in millions)

(Unaudited)

For the Three Months Ended

December 27, 2025

Gross profit

Selling, general and administrative expenses

Operating income/(loss)

Interest expense

Other expense/(income)

Income/(loss) before income taxes

Provision for/(benefit from) income taxes

Net income/(loss)

Net income/(loss) attributable to noncontrolling interest

Net income/(loss) attributable to common shareholders

Diluted EPS

GAAP Results

2,072

988

1,084

238

(51)

897

249

648

(3)

651

0.55

Items Affecting Comparability

Restructuring activities

—

(3)

—

(6)

—

0.01

Unrealized losses/(gains) on commodity hedges

—

0.02

Impairment losses

—

(5)

—

(2)

—

0.01

Separation costs

—

(43)

—

0.03

Losses/(gains) on sale of business

—

(2)

—

(2)

—

(2)

—

Nonmonetary currency devaluation

—

(8)

—

0.01

Certain significant discrete income tax items

—

(63)

—

0.04

Adjusted Non-GAAP Results

2,101

1,164

794

0.67

Schedule 8

The Kraft Heinz Company

Reconciliation of GAAP Results to Non-GAAP Results

(dollars in millions)

(Unaudited)

For the Three Months Ended

December 28, 2024

Gross profit

Selling, general and administrative expenses

Operating income/(loss)

Interest expense

Other expense/(income)

Income/(loss) before income taxes

Provision for/(benefit from) income taxes

Net income/(loss)

Net income/(loss) attributable to noncontrolling interest

Net income/(loss) attributable to common shareholders

Diluted EPS

GAAP Results

2,245

2,285

(40)

227

(29)

(238)

(2,370)

2,132

2,131

1.76

Items Affecting Comparability

Restructuring activities

(21)

—

(1)

—

0.02

Unrealized losses/(gains) on commodity hedges

—

0.01

Impairment losses

—

(1,387)

1,387

—

1,387

304

1,083

—

1,083

0.90

Losses/(gains) on sale of business

—

(3)

—

Nonmonetary currency devaluation

—

(9)

—

0.01

Certain significant discrete income tax items

—

2,239

(2,239)

—

(2,239)

(1.86)

Adjusted Non-GAAP Results

2,262

1,385

1,019

0.84

Schedule 9

The Kraft Heinz Company

Reconciliation of GAAP Results to Non-GAAP Results

(dollars in millions)

(Unaudited)

For the Year Ended

December 27, 2025

Gross profit

Selling, general and administrative expenses

Operating income/(loss)

Interest expense

Other expense/(income)

Income/(loss) before income taxes

Provision for/(benefit from) income taxes

Net income/(loss)

Net income/(loss) attributable to noncontrolling interest

Net income/(loss) attributable to common shareholders

Diluted EPS

GAAP Results

8,309

12,978

(4,669)

947

(171)

(5,445)

403

(5,848)

(2)

(5,846)

(4.93)

Items Affecting Comparability

Restructuring activities

(12)

—

(8)

—

0.02

Unrealized losses/(gains) on commodity hedges

—

0.02

Impairment losses

—

(9,306)

9,306

—

9,306

624

8,682

—

8,682

7.31

Separation costs

—

(60)

—

0.05

Losses/(gains) on sale of business

—

(42)

—

0.04

Nonmonetary currency devaluation

—

(34)

—

0.03

Certain significant discrete income tax items

—

(73)

—

0.06

Adjusted Non-GAAP Results

8,345

4,745

3,080

2.60

Schedule 10

The Kraft Heinz Company

Reconciliation of GAAP Results to Non-GAAP Results

(dollars in millions)

(Unaudited)

For the Year Ended

December 28, 2024

Gross profit

Selling, general and administrative expenses

Operating income/(loss)

Interest expense

Other expense/(income)

Income/(loss) before income taxes

Provision for/(benefit from) income taxes

Net income/(loss)

Net income/(loss) attributable to noncontrolling interest

Net income/(loss) attributable to common shareholders

Diluted EPS

GAAP Results

8,968

7,285

1,683

912

(85)

856

(1,890)

2,746

2,744

2.26

Items Affecting Comparability

Restructuring activities

(19)

—

0.01

Unrealized losses/(gains) on commodity hedges

(19)

—

(19)

—

(19)

(4)

(15)

—

(15)

(0.01)

Impairment losses

—

(3,669)

3,669

—

3,669

533

3,136

—

3,136

2.58

Losses/(gains) on sale of business

—

(81)

—

0.05

Nonmonetary currency devaluation

—

(16)

—

0.01

Certain significant discrete income tax items

—

2,239

(2,239)

—

(2,239)

(1.84)

Adjusted Non-GAAP Results

8,957

5,360

3,722

3.06

Schedule 11

The Kraft Heinz Company

Adjusted Gross Profit Margin

(dollars in millions)

(Unaudited)

For the Three Months Ended

For the Year Ended

December 27,

2025

December 28,

2024

December 27,

2025

December 28,

2024

Adjusted Gross Profit

2,101

2,262

8,345

8,957

Net sales

6,354

6,576

24,942

25,846

Adjusted Gross Profit Margin

33.1%

34.4%

33.5%

34.7%

Schedule 12

The Kraft Heinz Company

Key Drivers of Change in Adjusted EPS

(Unaudited)

For the Three Months Ended

December 27,

2025

December 28,

2024

$ Change

Key drivers of change in Adjusted EPS:

Results of operations (a)(b)

0.82

0.97

(0.15)

Interest expense

(0.17)

(0.16)

(0.01)

Other expense/(income)

0.04

0.03

0.01

Effective tax rate

(0.03)

—

(0.03)

Effect of share repurchases

0.01

—

0.01

Adjusted EPS

0.67

0.84

(0.17)

(a)

Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.04 for the three months ended December 27, 2025 and December 28, 2024.

(b)

Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.01 for the three months ended December 27, 2025 and December 28, 2024.

Schedule 13

The Kraft Heinz Company

Key Drivers of Change in Adjusted EPS

(Unaudited)

For the Year Ended

December 27,

2025

December 28,

2024

$ Change

Key drivers of change in Adjusted EPS:

Results of operations (a)(b)

3.15

3.55

(0.40)

Interest expense

(0.63)

(0.61)

(0.02)

Other expense/(income) (c)

0.17

0.12

0.05

Effective tax rate

(0.15)

—

(0.15)

Effect of share repurchases

0.06

—

0.06

Adjusted EPS

2.60

3.06

(0.46)

(a)

Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.16 for the year ended December 27, 2025 and $0.17 for the year ended December 28, 2024.

(b)

Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.03 for the years ended December 27, 2025 and $0.04 for the year ended December 28, 2024.

(c)

Includes non-cash amortization of prior service credits, which accounted for a benefit to Adjusted EPS from other expense/(income) of $0.01 for the years ended December 27, 2025 and December 28, 2024.

Schedule 14

The Kraft Heinz Company

Consolidated Balance Sheets

(in millions, except per share data)

(Unaudited)

December 27, 2025

December 28, 2024

ASSETS

Cash and cash equivalents

2,615

1,334

Trade receivables, net

2,254

2,147

Inventories

3,167

3,376

Prepaid expenses

291

215

Marketable securities

1,060

—

Other current assets

588

583

Assets held for sale

152

—

Total current assets

10,127

7,655

Property, plant and equipment, net

7,318

7,152

Goodwill

22,179

28,673

Intangible assets, net

37,529

40,099

Other non-current assets

4,633

4,708

TOTAL ASSETS

81,786

88,287

LIABILITIES AND EQUITY

Current portion of long-term debt

1,908

654

Accounts payable

4,308

4,188

Accrued marketing

801

697

Interest payable

298

263

Other current liabilities

1,455

1,451

Liabilities held for sale

—

Total current liabilities

8,778

7,253

Long-term debt

19,311

19,215

Deferred income taxes

9,022

9,679

Accrued postemployment costs

131

135

Long-term deferred income

1,321

1,374

Other non-current liabilities

1,434

1,306

TOTAL LIABILITIES

39,997

38,962

Redeemable noncontrolling interest

Equity:

Common stock, $0.01 par value

Additional paid-in capital

51,287

52,135

Retained earnings/(deficit)

(4,629)

2,171

Accumulated other comprehensive income/(losses)

(2,370)

(2,915)

Treasury stock, at cost

(2,636)

(2,218)

Total shareholders' equity

41,664

49,185

Noncontrolling interest

113

134

TOTAL EQUITY

41,777

49,319

TOTAL LIABILITIES AND EQUITY

81,786

88,287

Schedule 15

The Kraft Heinz Company

Consolidated Statements of Cash Flows

(in millions)

(Unaudited)

For the Year Ended

December 27,

2025

December 28,

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income/(loss)

(5,848)

2,746

Adjustments to reconcile net income/(loss) to operating cash flows:

Depreciation and amortization

968

948

Divestiture-related license income

(52)

(54)

Equity award compensation expense

109

Deferred income tax provision/(benefit)

(495)

(2,857)

Postemployment benefit plan asset transfers/(contributions)

185

161

Goodwill and intangible asset impairment losses

9,306

3,669

Nonmonetary currency devaluation

Loss/(gain) on sale of business

Other items, net

(3)

(46)

Changes in current assets and liabilities:

Trade receivables

(55)

(139)

Inventories

133

(6)

Accounts payable

(97)

(308)

Other current assets

(88)

(38)

Other current liabilities

337

(98)

Net cash provided by/(used for) operating activities

4,462

4,184

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(801)

(1,024)

Payments to acquire intangible assets

—

(140)

Purchases of marketable securities

(1,724)

—

Proceeds from sale of marketable securities

686

—

Proceeds from sale of business, net of cash disposed and working capital adjustments

Other investing activities, net

(3)

133

Net cash provided by/(used for) investing activities

(1,833)

(1,023)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayments of long-term debt

(678)

(618)

Proceeds from issuance of long-term debt

1,620

594

Repurchases of common stock

(436)

(988)

Dividends paid

(1,898)

(1,931)

Other financing activities, net

141

(65)

Net cash provided by/(used for) financing activities

(1,251)

(3,008)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(71)

Cash, cash equivalents, and restricted cash

Net increase/(decrease)

1,458

Balance at beginning of period

1,486

1,404

Balance at end of period

2,944

1,486

Schedule 16

The Kraft Heinz Company

Reconciliation of Net Cash Provided By/(Used for) Operating Activities to Free Cash Flow

(in millions)

(Unaudited)

For the Year Ended

December 27, 2025

December 28, 2024

Net cash provided by/(used for) operating activities

4,462

4,184

Capital expenditures

(801)

(1,024)

Free Cash Flow

3,661

3,160

Adjusted Net Income/(Loss)

3,080

3,722

Free Cash Flow Conversion

119%

85%

Schedule 17

The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

(dollars in millions)

(Unaudited)

For the Twelve

Months Ended

December 27, 2025

Net income/(loss)

(5,848)

Interest expense

947

Other expense/(income)

(171)

Provision for/(benefit from) income taxes

403

Operating income/(loss)

(4,669)

Depreciation and amortization (excluding restructuring activities)

967

Divestiture-related license income

(52)

Restructuring activities

Separation costs

Unrealized losses/(gains) on commodity hedges

Impairment losses

9,306

Equity award compensation expense

Adjusted EBITDA

5,755

Current portion of long-term debt

1,908

Long-term debt

19,311

Less: Cash and cash equivalents

(2,615)

Less: Short-term Investments

(1,060)

17,544

Net Leverage

3.0