Kraft Heinz (NASDAQ: KHC) reported Q3 EPS of $0.61, $0.03 better than the analyst estimate of $0.58. Revenue for the quarter came in at $6.24 billion versus the consensus estimate of $6.26 billion.

GUIDANCE:

Kraft Heinz sees FY2025 EPS of $2.50-$2.57, versus the consensus of $2.58.

• Organic Net Sales(1)(2) down 3.0 to down 3.5 percent versus the prior year, compared to the previous expectation of down 1.5 to down 3.5 percent. This contemplates slower growth in Emerging Markets, driven by continued declines in Indonesia and pressure in U.S. Retail.
• Constant Currency Adjusted Operating Income(1)(2) down 10 to down 12 percent versus the prior year, compared to the previous expectation of down 5 to down 10 percent. This also contemplates an Adjusted Gross Profit Margin(1)(2) that is now expected to be down approximately 100 basis points versus the prior year.
• Adjusted EPS(1)(2) in the range of $2.50 to $2.57, compared to the previous expected range of $2.51 to $2.67. The Company continues to expect an effective tax rate on Adjusted EPS to be approximately 26 percent, which reflects an approximate $0.23 headwind year over year. This increase in the effective tax rate is primarily driven by the impact of several countries enacting global minimum tax regulations. It is partially offset by the annual go-forward benefit related to the transfer of certain business operations completed in the fourth quarter of 2024. Additionally, the Company expects interest expense to be approximately $950 million and other expense/(income) to be approximately ($250) million for the full year.
• Free Cash Flow(1)(2) to increase versus the prior year, with Free Cash Flow Conversion(1)(2) of at least 100 percent, compared to the previous expectation of at least 95 percent. This is driven by working capital efficiencies and lower cash outflows for variable compensation, partially offset by a higher cash tax primarily driven by the impact of several countries enacting global minimum tax regulations.

For earnings history and earnings-related data on Kraft Heinz (KHC) click here.