Kraft Heinz (KHC) Shares Rise 1.7% after Presenting Growth Strategy

By Tamara Parker • Wednesday, February 21 15:49 • Permanent Link

Kraft Heinz Company (NASDAQ: KHC) presented today at the 2024 Consumer Analyst Group of New York (CAGNY) conference, outlining its path to deliver consistent profitable growth. CEO Carlos Abrams-Rivera and Global Chief Financial Officer Andre Maciel discussed the company's plans to generate top-tier stockholder returns and be a leader in creating food that makes consumers feel good.

The company aims to achieve long-term growth through its three pillars: North America retail, global away from home, and emerging markets. To fuel top-line growth, Kraft Heinz will invest in marketing, research and development, technology, innovation, collaboration with customers, and its brand growth system. The company also plans to drive efficiencies through supply chain optimization, revenue management, and expanded centralized services.

Kraft Heinz has realigned its portfolio around three new platform roles – accelerate, protect, and balance. The company expects the accelerate platforms, including taste elevation, easy ready meals, and substantial snacking, to drive outsized growth and plans to prioritize investments in these platforms.

In terms of the long-term financial profile, Kraft Heinz detailed its growth algorithm, which includes organic net sales growth of 2% to 3%, adjusted operating income growth of 4% to 6%, adjusted EPS growth of 6% to 8%, and free cash flow conversion at approximately 100%.

Looking at the 2024 outlook, Kraft Heinz reiterated its expectation to deliver organic net sales growth of 0% to 2%, adjusted operating income growth of 2% to 4%, and adjusted EPS growth of 1% to 3%. The company also provided guidance on adjusted gross profit margin expansion and effective tax rates on adjusted EPS.

Following the presentation, the company's shares moved 1.7%, and are now trading at a price of $36.23.

Carlos Abrams-Rivera, CEO of Kraft Heinz, commented on the company's outlook, stating: "We are confident in our ability to deliver profitable growth and create value for our shareholders as we execute on our strategic priorities."

The full 8-K submission from Kraft Heinz Company is available here.

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