Kraft Heinz Co. has recently released its 10-Q report, providing an in-depth look into the company's financial condition and performance. The company, known for its wide range of food and beverage products, operates through four operating segments: North America, Europe and Pacific Developed Markets, West and East Emerging Markets, and Asia Emerging Markets. Kraft Heinz Co. announced plans to separate into two independent, publicly traded companies through a tax-free spin-off, with the expectation of completing the separation in the second half of 2026. The company also made significant divestitures, including the sale of its infant and specialty food business in Italy.
In the nine months ended September 27, 2025, Kraft Heinz Co. reported a 3.5% decrease in net sales, totaling $18.6 billion compared to $19.3 billion in the same period in 2024. The company's operating income saw a significant turnaround, shifting from a loss of $101 million in 2024 to an income of $1.025 billion in 2025. Similarly, the net income attributable to common shareholders increased from a loss of $290 million in 2024 to a gain of $615 million in 2025. However, the company reported a decrease in its adjusted operating income by 9.9% and a decrease in adjusted diluted earnings per share (EPS) by 13.5% for the nine months ended September 27, 2025, compared to the same period in 2024.
In terms of net sales, Kraft Heinz Co. experienced a 2.3% decrease in the three months ended September 27, 2025, compared to the same period in 2024. The company attributed this decline to unfavorable volume/mix, which offset higher pricing. Similarly, for the nine months ended September 27, 2025, organic net sales decreased by 3.1% due to unfavorable volume/mix, despite higher pricing in each segment.
The company also addressed various factors affecting its financial results, including inflation, supply chain, and tariff impacts, as well as consumer trends and the regulatory landscape. Notably, Kraft Heinz Co. announced its commitment to remove Food, Drug & Cosmetic colors from its U.S. portfolio of products before the end of 2027, which could impact a subset of its products sold within the North America segment.
The market has reacted to these announcements by moving the company's shares -0.27% to a price of $25.52. Check out the company's full 10-Q submission here.
