The Kraft Heinz Company Reports Fourth Quarter and Full Year 2015 Results

• Q4 GAAP net sales increased 155% due to the merger of Kraft and Heinz; Pro Forma Organic Net Sales decreased 3.1%

• Q4 GAAP operating income increased 266%; Adjusted Pro Forma EBITDA⁽¹⁾ grew 20.3% on a constant currency basis, including an approximate 4.5 percentage point benefit from a 53^rd week of shipments

• Q4 GAAP diluted EPS was $0.23; Adjusted Pro Forma EPS⁽¹⁾ was $0.62, including an approximate $0.03 benefit from a 53^rd week of shipments

PITTSBURGH & CHICAGO--(BUSINESS WIRE)-- The Kraft Heinz Company (NASDAQ: KHC) ("Kraft Heinz" or the "Company") today reported fourth quarter and full year 2015 financial results that reflected strong gains in profitability from improved operations and the ongoing integration of Kraft and Heinz.

"The important integration work and financial results we delivered in 2015 set a solid base on which we can drive sustainable growth across our global business," said Kraft Heinz CEO Bernardo Hees. "We are working to implement proven management methodologies, remove inefficient spending and streamline our organization, while investing in our brands and innovation to drive long-term profitable growth. We believe that all of this positions Kraft Heinz for a strong performance in 2016 and beyond."

Pro forma net sales were $7.1 billion, down 5.0 percent versus the year-ago period, primarily driven by a negative 6.1 percentage point impact from currency and a negative 0.5 percentage point impact from divestitures that was partially offset by a 4.7 percentage point benefit from a 53^rd week of shipments. Pro Forma Organic Net Sales decreased 3.1 percent versus the year-ago period. Net pricing increased 0.7 percentage points reflecting gains from pricing in all segments that were partially offset by a negative impact of approximately 1.5 percentage points related to lower overall key commodity costs in the United States and Canada.⁽³⁾ Volume/mix decreased 3.8 percentage points as strong growth in ketchup and sauces globally was more than offset by lower shipments in ready-to-drink beverages, frozen meals and coffee in the United States and Canada.

Adjusted Pro Forma EBITDA increased 10.9 percent versus the year-ago period to $1.9 billion, despite a negative 9.4 percentage point impact from currency that was partially offset by a benefit of approximately 4.5 percentage points from a 53^rd week of shipments. Excluding these factors, gains from cost savings initiatives⁽⁴⁾ and favorable pricing net of commodity costs were partially offset by unfavorable volume/mix.

Adjusted Pro Forma EPS increased 10.7 percent versus the year-ago period to $0.62 from $0.56, including an approximate $0.03 benefit from a 53^rdweek of shipments. This increase primarily reflected the growth in Adjusted Pro Forma EBITDA, partially offset by a higher tax rate compared to the prior year.

Full report.