KRAFT HEINZ SUPPLEMENTAL HISTORICAL SEGMENT FINANCIAL INFORMATION AND SUPPLEMENTAL NON-GAAP
FINANCIAL INFORMATION
Table of Contents
Page No. | ||
Introduction | 2 | |
Results of Operations by Segment…………………………………………………………………………………………………………. | 2 | |
Non-GAAP Financial Measures | 3 |
Unless the context otherwise requires, the terms "we," "us," "our," "Kraft Heinz," and the "Company" each refer to The Kraft Heinz Company and all of its consolidated subsidiaries. Unless the context otherwise requires, references to years and quarters contained herein pertain to our fiscal years and fiscal quarters.
Forward-Looking Statements
This supplemental information contains a number of forward-looking statements. Words such as "anticipate," "assess," "believe," "drive," "evaluate," "grow," "improve," "intend," "invest," "make," "plan," "reflect," "see," "will," and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our plans and growth. 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 our control.
Important factors that may affect our 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; our 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 our relationships with significant customers or suppliers, or in other business relationships; our ability to maintain, extend, and expand our reputation and brand image; our ability to leverage our brand value to compete against private label products; our ability to drive revenue growth in our key product categories or platforms, increase our 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; our ability to identify, complete, or realize the benefits from strategic acquisitions, alliances, divestitures, joint ventures, or other investments; our ability to successfully execute our strategic initiatives; the impacts of our international operations; our ability to protect intellectual property rights; our ownership structure; our ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness; our 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 our credit rating; the impact of future sales of our common stock in the public market; our 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 we or our customers, suppliers, distributors, or regulators operate; economic and political conditions in the United States and in various other nations where we do business (including the Russia and Ukraine conflict and its regional and global ramifications); changes in our management team or other key personnel and our 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 our forward-looking statements, see Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 25, 2021. We disclaim and do not undertake any obligation to update, revise, or withdraw any forward-looking statement in this supplemental information, except as required by applicable law or regulation.
1
Introduction
Background:
In the second quarter of 2022, we reorganized our segments. For informational purposes only, we have provided this supplemental information to present the effects of this change to certain previously disclosed financial information, including certain unaudited information related to our results of operations by segment and non-GAAP financial measures, for the years ended December 25, 2021, December 26, 2020, and December 28, 2019, as well as for each of the quarters ended March 26, 2022, December 25, 2021, September 25, 2021, June 26, 2021, and March 27, 2021. The segment reorganization in the second quarter of 2022 had no impact on our condensed consolidated financial statements for any of the periods presented in our Quarterly Report on Form 10-Q for the three months ended March 26, 2022 ("Q1 2022 Form 10-Q") filed on April 28, 2022 or on our consolidated financial statements for any of the periods presented in our Annual Report on Form 10-K for the year ended December 25, 2021 ("2021 Form 10-K") filed on February 17, 2022.
The following unaudited financial information is based on our historical financial statements after giving effect to the segment reorganization in the second quarter of 2022. You should read this supplemental information in conjunction with our unaudited condensed consolidated financial statements and related notes in our Q1 2022 Form 10-Q and our audited consolidated financial statements and related notes in our 2021 Form 10-K. The financial information contained in this report is not indicative of future or annual results.
Segment Changes:
As previously described in our Q1 2022 Form 10-Q, prior to the reorganization of our segments in the second quarter of 2022, we managed and reported our operating results through three reportable segments defined by geographic region: United States, International, and Canada.
During the fourth quarter of 2021, certain organizational changes were announced that impacted our internal reporting and reportable segments beginning in the second quarter of 2022. As a result of these changes, which are intended to advance and support our long-term growth plans by streamlining and synergizing our United States and Canada businesses, we combined our United States and Canada zones to form the North America zone.
After these organizational changes were announced, we reassessed our reportable segment structure in accordance with Accounting Standards Codification 280, Segment Reporting. Under our new organizational structure, our chief operating decision maker assesses the performance of and makes decisions about resources to be allocated to our operating segments, which were also determined to be our reportable segments, as follows: North America and International.
Therefore, effective in the second quarter of 2022, we manage and report our operating results through two reportable segments defined by geographic region: North America and International.
Results of Operations by Segment
In this supplemental information, in addition to results prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we disclose certain non-GAAP financial measures. These non-GAAP financial measures assist management in comparing our 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 our underlying operations. For additional information and reconciliations from GAAP financial measures see the Non-GAAP Financial Measures section.
Management evaluates segment performance based on several factors, including net sales, Organic Net Sales, and Segment Adjusted EBITDA. Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for additional information. Segment 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, we exclude, when they occur, the impacts of divestiture-related license income (e.g., income related to the sale of licenses in connection with the Cheese Transaction), restructuring activities, deal 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, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities). Segment Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management also uses Segment Adjusted EBITDA to allocate resources.
2
Additionally, certain of the historical Organic Net Sales figures presented within this supplemental information differ from previously disclosed amounts as a result of excluding the impact of the sales of certain assets in our global nuts business (the "Nuts Transaction") and our global cheese business (the "Cheese Transaction"), consistent with our definition of Organic Net Sales in the Non-GAAP Financial Measures section. The Nuts Transaction closed on June 7, 2021 and the Cheese Transaction closed on November 29, 2021. See our Q1 2022 Form 10-Q and our 2021 Form 10-K for additional information on the Nuts Transaction and the Cheese Transaction.
| 2021 compared to 2020 | 2020 compared to 2019 | |||||||||||||||
| For the Year Ended | ||||||||||||||||
|
December 25, 2021 |
December 26, 2020 |
December 26, 2020 |
December 28, 2019 | |||||||||||||
| (in millions) | ||||||||||||||||
North America | ||||||||||||||||
Net sales | $ | 20,351 | $ | 20,844 | $ | 20,844 | $ | 19,726 | ||||||||
Organic Net Sales(a) | 18,251 | 17,994 | 18,014 | 16,881 | ||||||||||||
Segment Adjusted EBITDA | 5,576 | 5,946 | 5,946 | 5,316 | ||||||||||||
International | ||||||||||||||||
Net sales | 5,691 | 5,341 | 5,341 | 5,251 | ||||||||||||
Organic Net Sales(a) | 5,463 | 5,299 | 5,435 | 5,187 | ||||||||||||
Segment Adjusted EBITDA | 1,066 | 1,058 | 1,058 | 1,004 |
| (a) | Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information. |
| For the Three Months Ended | ||||||||||||||||||||
|
March 26, 2022 |
December 25, 2021 |
September 25, 2021 |
June 26, 2021 |
March 27, 2021 | ||||||||||||||||
| (in millions) | ||||||||||||||||||||
North America | ||||||||||||||||||||
Net sales | $ | 4,601 | $ | 5,208 | $ | 4,941 | $ | 5,202 | $ | 5,000 | ||||||||||
Organic Net Sales(a) | 4,602 | 4,897 | 4,514 | 4,554 | 4,286 | |||||||||||||||
Segment Adjusted EBITDA | 1,173 | 1,445 | 1,273 | 1,491 | 1,367 | |||||||||||||||
International | ||||||||||||||||||||
Net sales | 1,444 | 1,501 | 1,383 | 1,413 | 1,394 | |||||||||||||||
Organic Net Sales(a) | 1,479 | 1,493 | 1,344 | 1,300 | 1,326 | |||||||||||||||
Segment Adjusted EBITDA | 242 | 245 | 252 | 286 | 283 |
| (a) | Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information. |
Non-GAAP Financial Measures
The non-GAAP financial measures we provide in this supplemental information should be viewed in addition to, and not as an alternative for, results prepared in accordance with GAAP.
To supplement the GAAP financial information provided, we have presented Organic Net Sales, Adjusted EBITDA, and Constant Currency Adjusted EBITDA, 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), 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 our 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 our underlying operations. Management believes that presenting our non-GAAP financial measures (i.e., Organic Net Sales, Adjusted EBITDA, and Constant Currency 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 our results. We believe 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 our business than could be obtained absent these disclosures.
3
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. We calculate 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 we calculate the previous year's results using the current year's exchange rate. Organic Net Sales is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.
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, we exclude, when they occur, the impacts of divestiture-related license income (e.g., income related to the sale of licenses in connection with the Cheese Transaction), 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). We also present Adjusted EBITDA on a constant currency basis. We calculate the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous year's results using the current year's exchange rate. Adjusted EBITDA and Constant Currency Adjusted EBITDA are tools that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.
4
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 | |||||||||||||
December 25, 2021 | ||||||||||||||||
North America | $ | 20,351 | $ | 114 | $ | 1,986 | $ | 18,251 | ||||||||
International | 5,691 | 205 | 23 | 5,463 | ||||||||||||
Kraft Heinz | $ | 26,042 | $ | 319 | $ | 2,009 | $ | 23,714 | ||||||||
December 26, 2020 | ||||||||||||||||
North America | $ | 20,844 | $ | - | $ | 2,850 | $ | 17,994 | ||||||||
International | 5,341 | 22 | 20 | 5,299 | ||||||||||||
Kraft Heinz | $ | 26,185 | $ | 22 | $ | 2,870 | $ | 23,293 | ||||||||
Year-over-year growth rates | ||||||||||||||||
North America | (2.4)% | 0.5 pp | (4.3) pp | 1.4 % | ||||||||||||
International | 6.5 % | 3.4 pp | 0.0 pp | 3.1 % | ||||||||||||
Kraft Heinz | (0.5)% | 1.2 pp | (3.5) pp | 1.8 % |
5
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 | |||||||||||||
December 26, 2020 | ||||||||||||||||
North America | $ | 20,844 | $ | (21) | $ | 2,851 | $ | 18,014 | ||||||||
International | 5,341 | (114) | 20 | 5,435 | ||||||||||||
Kraft Heinz | $ | 26,185 | $ | (135) | $ | 2,871 | $ | 23,449 | ||||||||
December 28, 2019 | ||||||||||||||||
North America | $ | 19,726 | $ | - | $ | 2,845 | $ | 16,881 | ||||||||
International | 5,251 | 27 | 37 | 5,187 | ||||||||||||
Kraft Heinz | $ | 24,977 | $ | 27 | $ | 2,882 | $ | 22,068 | ||||||||
Year-over-year growth rates | ||||||||||||||||
North America | 5.7 % | (0.1) pp | (0.9) pp | 6.7 % | ||||||||||||
International | 1.7 % | (2.7) pp | (0.4) pp | 4.8 % | ||||||||||||
Kraft Heinz | 4.8 % | (0.7) pp | (0.8) pp | 6.3 % |
6
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Net Sales | Currency |
Acquisitions and Divestitures |
Organic Net Sales | |||||||||||||
March 26, 2022 | ||||||||||||||||
North America | $ | 4,601 | $ | (1) | $ | - | $ | 4,602 | ||||||||
International | 1,444 | (65) | 30 | 1,479 | ||||||||||||
Kraft Heinz | $ | 6,045 | $ | (66) | $ | 30 | $ | 6,081 | ||||||||
March 27, 2021 | ||||||||||||||||
North America | $ | 5,000 | $ | - | $ | 692 | $ | 4,308 | ||||||||
International | 1,394 | 3 | 5 | 1,386 | ||||||||||||
Kraft Heinz | $ | 6,394 | $ | 3 | $ | 697 | $ | 5,694 | ||||||||
Year-over-year growth rates | ||||||||||||||||
North America | (8.0)% | 0.0 pp | (14.8) pp | 6.8 % | ||||||||||||
International | 3.6 % | (4.9) pp | 1.8 pp | 6.7 % | ||||||||||||
Kraft Heinz | (5.5)% | (1.1) pp | (11.2) pp | 6.8 % |
7
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Net Sales | Currency |
Acquisitions and Divestitures |
Organic Net Sales | |||||||||||||
December 25, 2021 | ||||||||||||||||
North America | $ | 5,208 | $ | 14 | $ | 297 | $ | 4,897 | ||||||||
International | 1,501 | (6 | ) | 14 | 1,493 | |||||||||||
Kraft Heinz | $ | 6,709 | $ | 8 | $ | 311 | $ | 6,390 | ||||||||
December 26, 2020 | ||||||||||||||||
North America | $ | 5,529 | $ | - | $ | 777 | $ | 4,752 | ||||||||
International | 1,410 | 5 | 6 | 1,399 | ||||||||||||
Kraft Heinz | $ | 6,939 | $ | 5 | $ | 783 | $ | 6,151 | ||||||||
Year-over-year growth rates | ||||||||||||||||
North America | (5.8)% | 0.3 pp | (9.1) pp | 3.0 % | ||||||||||||
International | 6.5 % | (0.9) pp | 0.6 pp | 6.8 % | ||||||||||||
Kraft Heinz | (3.3)% | 0.1 pp | (7.3) pp | 3.9 % |
8
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Net Sales | Currency |
Acquisitions and Divestitures |
Organic Net Sales | |||||||||||||
September 25, 2021 | ||||||||||||||||
North America | $ | 4,941 | $ | 25 | $ | 402 | $ | 4,514 | ||||||||
International | 1,383 | 39 | - | 1,344 | ||||||||||||
Kraft Heinz | $ | 6,324 | $ | 64 | $ | 402 | $ | 5,858 | ||||||||
September 26, 2020 | ||||||||||||||||
North America | $ | 5,116 | $ | - | $ | 674 | $ | 4,442 | ||||||||
International | 1,325 | 6 | 5 | 1,314 | ||||||||||||
Kraft Heinz | $ | 6,441 | $ | 6 | $ | 679 | $ | 5,756 | ||||||||
Year-over-year growth rates | ||||||||||||||||
North America | (3.4)% | 0.5 pp | (5.5) pp | 1.6 % | ||||||||||||
International | 4.4 % | 2.6 pp | (0.4) pp | 2.2 % | ||||||||||||
Kraft Heinz | (1.8)% | 0.9 pp | (4.4) pp | 1.7 % |
9
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Net Sales | Currency |
Acquisitions and Divestitures |
Organic Net Sales | |||||||||||||
June 26, 2021 | ||||||||||||||||
North America | $ | 5,202 | $ | 53 | $ | 595 | $ | 4,554 | ||||||||
International | 1,413 | 108 | 5 | 1,300 | ||||||||||||
Kraft Heinz | $ | 6,615 | $ | 161 | $ | 600 | $ | 5,854 | ||||||||
June 27, 2020 | ||||||||||||||||
North America | $ | 5,343 | $ | - | $ | 737 | $ | 4,606 | ||||||||
International | 1,305 | 5 | 5 | 1,295 | ||||||||||||
Kraft Heinz | $ | 6,648 | $ | 5 | $ | 742 | $ | 5,901 | ||||||||
Year-over-year growth rates | ||||||||||||||||
North America | (2.6)% | 1.0 pp | (2.5) pp | (1.1)% | ||||||||||||
International | 8.3 % | 7.9 pp | 0.0 pp | 0.4 % | ||||||||||||
Kraft Heinz | (0.5)% | 2.3 pp | (2.0) pp | (0.8)% |
10
The Kraft Heinz Company
Reconciliation of Net Sales to Organic Net Sales
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Net Sales | Currency |
Acquisitions and Divestitures |
Organic Net Sales | |||||||||||||
March 27, 2021 | ||||||||||||||||
North America | $ | 5,000 | $ | 22 | $ | 692 | $ | 4,286 | ||||||||
International | 1,394 | 64 | 4 | 1,326 | ||||||||||||
Kraft Heinz | $ | 6,394 | $ | 86 | $ | 696 | $ | 5,612 | ||||||||
March 28, 2020 | ||||||||||||||||
North America | $ | 4,856 | $ | - | $ | 662 | $ | 4,194 | ||||||||
International | 1,301 | 6 | 4 | 1,291 | ||||||||||||
Kraft Heinz | $ | 6,157 | $ | 6 | $ | 666 | $ | 5,485 | ||||||||
Year-over-year growth rates | ||||||||||||||||
North America | 3.0 % | 0.5 pp | 0.3 pp | 2.2 % | ||||||||||||
International | 7.2 % | 4.5 pp | (0.1) pp | 2.8 % | ||||||||||||
Kraft Heinz | 3.9 % | 1.4 pp | 0.2 pp | 2.3 % |
11
The Kraft Heinz Company
Reconciliation of Net Income/(Loss) to Adjusted EBITDA
For the Year Ended
(dollars in millions)
(Unaudited)
| December 25, 2021 |
December 26, 2020 |
December 28, 2019 | ||||||||||
Net income/(loss) | $ | 1,024 | $ | 361 | $ | 1,933 | ||||||
Interest expense | 2,047 | 1,394 | 1,361 | |||||||||
Other expense/(income) | (295) | (296) | (952) | |||||||||
Provision for/(benefit from) income taxes | 684 | 669 | 728 | |||||||||
Operating income/(loss) | 3,460 | 2,128 | 3,070 | |||||||||
Depreciation and amortization (excluding restructuring activities) | 910 | 955 | 985 | |||||||||
Divestiture-related license income | (4) | - | - | |||||||||
Restructuring activities | 84 | 15 | 102 | |||||||||
Deal costs | 11 | 8 | 19 | |||||||||
Unrealized losses/(gains) on commodity hedges | 17 | (6) | (57) | |||||||||
Impairment losses | 1,634 | 3,413 | 1,899 | |||||||||
Certain non-ordinary course legal and regulatory matters | 62 | - | - | |||||||||
Equity award compensation expense (excluding restructuring activities) | 197 | 156 | 46 | |||||||||
Adjusted EBITDA | $ | 6,371 | $ | 6,669 | $ | 6,064 | ||||||
12
The Kraft Heinz Company
Reconciliation of Net Income/(Loss) to Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
| March 26, 2022 |
December 25, 2021 |
September 25, 2021 |
June 26, 2021 |
March 27, 2021 | ||||||||||||||||
Net income/(loss) | $ | 781 | $ | (255) | $ | 736 | $ | (25) | $ | 568 | ||||||||||
Interest expense | 242 | 604 | 415 | 613 | 415 | |||||||||||||||
Other expense/(income) | (98) | (104) | (138) | (23) | (30) | |||||||||||||||
Provision for/(benefit from) income taxes | 190 | (265) | 143 | 670 | 136 | |||||||||||||||
Operating income/(loss) | 1,115 | (20) | 1,156 | 1,235 | 1,089 | |||||||||||||||
Depreciation and amortization (excluding restructuring activities) | 217 | 233 | 228 | 227 | 222 | |||||||||||||||
Divestiture-related license income | (14) | (4) | - | - | - | |||||||||||||||
Restructuring activities | 19 | 32 | 15 | 19 | 18 | |||||||||||||||
Deal costs | 8 | 3 | 2 | (1) | 7 | |||||||||||||||
Unrealized losses/(gains) on commodity hedges | (92) | 29 | 27 | (2) | (37) | |||||||||||||||
Impairment losses | 55 | 1,291 | - | 113 | 230 | |||||||||||||||
Certain non-ordinary course legal and regulatory matters | - | - | - | 62 | - | |||||||||||||||
Equity award compensation expense (excluding restructuring activities) | 34 | 42 | 51 | 53 | 51 | |||||||||||||||
Adjusted EBITDA | $ | 1,342 | $ | 1,606 | $ | 1,479 | $ | 1,706 | $ | 1,580 | ||||||||||
13
The Kraft Heinz Company
Reconciliation of Net Income/(Loss) to Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
| December 26, 2020 |
September 26, 2020 |
June 27, 2020 |
March 28, 2020 | |||||||||||||
Net income/(loss) | $ | 1,034 | $ | 598 | $ | (1,652) | $ | 381 | ||||||||
Interest expense | 328 | 314 | 442 | 310 | ||||||||||||
Other expense/(income) | (64) | (73) | (78) | (81) | ||||||||||||
Provision for/(benefit from) income taxes | 252 | 308 | (51) | 160 | ||||||||||||
Operating income/(loss) | 1,550 | 1,147 | (1,339) | 770 | ||||||||||||
Depreciation and amortization (excluding restructuring activities) | 233 | 232 | 247 | 243 | ||||||||||||
Restructuring activities | 3 | 8 | 4 | - | ||||||||||||
Deal costs | (1) | 9 | - | - | ||||||||||||
Unrealized losses/(gains) on commodity hedges | (53) | (70) | (26) | 143 | ||||||||||||
Impairment losses | 14 | 300 | 2,873 | 226 | ||||||||||||
Equity award compensation expense (excluding restructuring activities) | 42 | 41 | 40 | 33 | ||||||||||||
Adjusted EBITDA | $ | 1,788 | $ | 1,667 | $ | 1,799 | $ | 1,415 | ||||||||
14
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Year Ended
(dollars in millions)
(Unaudited)
| Adjusted EBITDA | Currency |
Constant Currency Adjusted EBITDA | ||||||||||
December 25, 2021 | ||||||||||||
North America | $ | 5,576 | $ | 28 | $ | 5,548 | ||||||
International | 1,066 | 50 | 1,016 | |||||||||
General corporate expenses | (271) | (2) | (269) | |||||||||
Kraft Heinz | $ | 6,371 | $ | 76 | $ | 6,295 | ||||||
December 26, 2020 | ||||||||||||
North America | $ | 5,946 | $ | - | $ | 5,946 | ||||||
International | 1,058 | 11 | 1,047 | |||||||||
General corporate expenses | (335) | - | (335) | |||||||||
Kraft Heinz | $ | 6,669 | $ | 11 | $ | 6,658 | ||||||
Year-over-year growth rates | ||||||||||||
North America | (6.2)% | 0.5 pp | (6.7)% | |||||||||
International | 0.7 % | 3.7 pp | (3.0)% | |||||||||
General corporate expenses | (19.1)% | 0.6 pp | (19.7)% | |||||||||
Kraft Heinz | (4.5)% | 0.9 pp | (5.4)% |
15
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Year Ended
(dollars in millions)
(Unaudited)
| Adjusted EBITDA | Currency |
Constant Currency Adjusted EBITDA | ||||||||||
December 26, 2020 | ||||||||||||
North America | $ | 5,946 | $ | (5) | $ | 5,951 | ||||||
International | 1,058 | (10) | 1,068 | |||||||||
General corporate expenses | (335) | (1) | (334) | |||||||||
Kraft Heinz | $ | 6,669 | $ | (16) | $ | 6,685 | ||||||
December 28, 2019 | ||||||||||||
North America | $ | 5,316 | $ | - | $ | 5,316 | ||||||
International | 1,004 | 13 | 991 | |||||||||
General corporate expenses | (256) | - | (256) | |||||||||
Kraft Heinz | $ | 6,064 | $ | 13 | $ | 6,051 | ||||||
Year-over-year growth rates | ||||||||||||
North America | 11.8 % | (0.1) pp | 11.9 % | |||||||||
International | 5.4 % | (2.4) pp | 7.8 % | |||||||||
General corporate expenses | 31.0 % | 0.2 pp | 30.8 % | |||||||||
Kraft Heinz | 10.0 % | (0.5) pp | 10.5 % |
16
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Adjusted EBITDA | Currency |
Constant Currency Adjusted EBITDA | ||||||||||
March 26, 2022 | ||||||||||||
North America | $ | 1,173 | $ | - | $ | 1,173 | ||||||
International | 242 | (9) | 251 | |||||||||
General corporate expenses | (73) | 1 | (74) | |||||||||
Kraft Heinz | $ | 1,342 | $ | (8) | $ | 1,350 | ||||||
March 27, 2021 | ||||||||||||
North America | $ | 1,367 | $ | - | $ | 1,367 | ||||||
International | 283 | 1 | 282 | |||||||||
General corporate expenses | (70) | - | (70) | |||||||||
Kraft Heinz | $ | 1,580 | $ | 1 | $ | 1,579 | ||||||
Year-over-year growth rates | ||||||||||||
North America | (14.2)% | 0.0 pp | (14.2)% | |||||||||
International | (14.4)% | (3.6) pp | (10.8)% | |||||||||
General corporate expenses | 4.5 % | (1.9) pp | 6.4 % | |||||||||
Kraft Heinz | (15.1)% | (0.6) pp | (14.5)% |
17
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Adjusted EBITDA | Currency |
Constant Currency Adjusted EBITDA | ||||||||||
December 25, 2021 | ||||||||||||
North America | $ | 1,445 | $ | 4 | $ | 1,441 | ||||||
International | 245 | 2 | 243 | |||||||||
General corporate expenses | (84) | 1 | (85) | |||||||||
Kraft Heinz | $ | 1,606 | $ | 7 | $ | 1,599 | ||||||
December 26, 2020 | ||||||||||||
North America | $ | 1,628 | $ | - | $ | 1,628 | ||||||
International | 261 | 3 | 258 | |||||||||
General corporate expenses | (101) | - | (101) | |||||||||
Kraft Heinz | $ | 1,788 | $ | 3 | $ | 1,785 | ||||||
Year-over-year growth rates | ||||||||||||
North America | (11.2)% | 0.2 pp | (11.4)% | |||||||||
International | (6.4)% | (0.4) pp | (6.0)% | |||||||||
General corporate expenses | (16.4)% | (0.9) pp | (15.5)% | |||||||||
Kraft Heinz | (10.2)% | 0.2 pp | (10.4)% |
18
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Adjusted EBITDA | Currency |
Constant Currency Adjusted EBITDA | ||||||||||
September 25, 2021 | ||||||||||||
North America | $ | 1,273 | $ | 5 | $ | 1,268 | ||||||
International | 252 | 9 | 243 | |||||||||
General corporate expenses | (46) | (1) | (45) | |||||||||
Kraft Heinz | $ | 1,479 | $ | 13 | $ | 1,466 | ||||||
September 26, 2020 | ||||||||||||
North America | $ | 1,466 | $ | - | $ | 1,466 | ||||||
International | 277 | 3 | 274 | |||||||||
General corporate expenses | (76) | - | (76) | |||||||||
Kraft Heinz | $ | 1,667 | $ | 3 | $ | 1,664 | ||||||
Year-over-year growth rates | ||||||||||||
North America | (13.1)% | 0.4 pp | (13.5)% | |||||||||
International | (9.1)% | 2.2 pp | (11.3)% | |||||||||
General corporate expenses | (39.5)% | 0.2 pp | (39.7)% | |||||||||
Kraft Heinz | (11.3)% | 0.6 pp | (11.9)% |
19
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Adjusted EBITDA | Currency |
Constant Currency Adjusted EBITDA | ||||||||||
June 26, 2021 | ||||||||||||
North America | $ | 1,491 | $ | 14 | $ | 1,477 | ||||||
International | 286 | 23 | 263 | |||||||||
General corporate expenses | (71) | (1) | (70) | |||||||||
Kraft Heinz | $ | 1,706 | $ | 36 | $ | 1,670 | ||||||
June 27, 2020 | ||||||||||||
North America | $ | 1,588 | $ | - | $ | 1,588 | ||||||
International | 275 | 2 | 273 | |||||||||
General corporate expenses | (64) | - | (64) | |||||||||
Kraft Heinz | $ | 1,799 | $ | 2 | $ | 1,797 | ||||||
Year-over-year growth rates | ||||||||||||
North America | (6.1)% | 0.9 pp | (7.0)% | |||||||||
International | 4.1 % | 7.5 pp | (3.4)% | |||||||||
General corporate expenses | 10.9 % | 2.2 pp | 8.7 % | |||||||||
Kraft Heinz | (5.2)% | 1.8 pp | (7.0)% |
20
The Kraft Heinz Company
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA
For the Three Months Ended
(dollars in millions)
(Unaudited)
| Adjusted EBITDA | Currency |
Constant Currency Adjusted EBITDA | ||||||||||
March 27, 2021 | ||||||||||||
North America | $ | 1,367 | $ | 5 | $ | 1,362 | ||||||
International | 283 | 16 | 267 | |||||||||
General corporate expenses | (70) | (1) | (69) | |||||||||
Kraft Heinz | $ | 1,580 | $ | 20 | $ | 1,560 | ||||||
March 28, 2020 | ||||||||||||
North America | $ | 1,264 | $ | - | $ | 1,264 | ||||||
International | 245 | 3 | 242 | |||||||||
General corporate expenses | (94) | - | (94) | |||||||||
Kraft Heinz | $ | 1,415 | $ | 3 | $ | 1,412 | ||||||
Year-over-year growth rates | ||||||||||||
North America | 8.1 % | 0.4 pp | 7.7 % | |||||||||
International | 15.5 % | 5.3 pp | 10.2 % | |||||||||
General corporate expenses | (25.9)% | 1.3 pp | (27.2)% | |||||||||
Kraft Heinz | 11.6 % | 1.2 pp | 10.4 % |
21
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Disclaimer
The Kraft Heinz Company published this content on 08 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 July 2022 21:03:04 UTC.
