PITTSBURGH & NORTHFIELD, Ill.--(BUSINESS WIRE)--The Kraft Heinz Company today reported financial results for the third quarter of 2015. During the quarter, the company completed the merger of Kraft and Heinz.
“Our third quarter results reflect continued progress as we integrate these two great companies while driving greater accountability, discipline and efficiency,” said Kraft Heinz CEO Bernardo Hees. “As we implement and expand methodologies such as Zero Based Budgeting, Management by Objectives and revenue management, we expect to continue creating the freedom to invest in our business and accelerating long-term profitable sales growth.”
Pro forma net sales were $6.4 billion, down 9.0 percent from the year-ago period, primarily driven by a negative 6.7 percentage point impact from currency and a negative 0.3 percentage point impact from divestitures. Pro Forma Organic Net Sales decreased 2.0 percent versus the year-ago period. Net pricing increased 0.7 percentage points reflecting pricing gains in all segments. These pricing gains were held 2 back by a negative impact of approximately 1.5 percentage points related to lower overall key commodity costs in the United States and Canada.2 Volume/mix declined 2.7 percentage points due to lower shipments in ready-to-drink beverages, foodservice, cheese and boxed dinners in the United States and Canada, partially offset by strong growth in Rest of World. Adjusted Pro Forma EBITDA declined 3.4 percent to $1.5 billion due to a negative 8.2 percentage point impact from currency. Excluding currency, gains from cost savings initiatives3 and favorable pricing net of commodity costs were partially offset by unfavorable volume/mix. Adjusted Pro Forma EPS declined 4.3 percent, primarily reflecting the change in Adjusted Pro Forma EBITDA as well as the impact of a higher tax rate compared to prior year.
Q3 2015 Business Segment Highlights
United States
United States pro forma net sales were $4.5 billion, down 3.7 percent versus the year-ago period. Net pricing increased 0.2 percentage points driven by higher net pricing across most categories that was held back by a negative impact of approximately 2.0 percentage points related to lower overall key commodity costs. Volume/mix declined 3.9 percentage points due to lower shipments in ready-to-drink beverages and boxed dinners that reflected category trends and higher net pricing, as well as lower foodservice shipments. These factors were partially offset by favorable volume/mix from product innovation in Lunchables, P3, coffee and cream cheese. United States Segment Adjusted EBITDA increased 1.4 percent to $1.1 billion driven by gains from cost savings initiatives and favorable pricing net of commodity costs, primarily in cheese and meat, which were partially offset by unfavorable volume/mix and higher marketing expense. Full report.
