Kraft Heinz

KHC Q1 2025 Earnings

Reported Apr 29, 2025 at 7:02 AM ET · SEC Source

Q1 25 EPS

$0.62

BEAT +2.70%

Est. $0.60

Q1 25 Revenue

$6.00B

MISS 0.38%

Est. $6.02B

vs S&P Since Q1 25

-47.6%

TRAILING MARKET

KHC -17.6% vs S&P +30.0%

Market Reaction

Did KHC Beat Earnings? Q1 2025 Results

Kraft Heinz delivered a mixed first quarter for 2025, eking out a narrow earnings beat while falling short on the top line amid a broad-based sales retreat. Adjusted EPS came in at $0.62, clearing the $0.60 consensus by 2.70%, but net sales slid 6.4%… Read more Kraft Heinz delivered a mixed first quarter for 2025, eking out a narrow earnings beat while falling short on the top line amid a broad-based sales retreat. Adjusted EPS came in at $0.62, clearing the $0.60 consensus by 2.70%, but net sales slid 6.4% year-over-year to $6.00 billion, a hair below the $6.02 billion analysts had expected. The primary culprit was a 5.6 percentage point drag from volume and mix, with weakness in Lunchables and an Easter timing shift accounting for a meaningful share of the shortfall, while foreign currency added an additional 1.6 percentage point headwind. North America, the company's largest segment, bore the brunt of the pressure with net sales falling 7.0% to $4.49 billion. Looking ahead, management lowered its full-year guidance, now projecting Organic Net Sales down 1.5% to 3.5% and Adjusted EPS of $2.51 to $2.67, citing tariff burdens and deteriorating consumer sentiment as key uncertainties, leaving income-focused investors watching closely given the company's substantial dividend commitments.

Key Takeaways

  • Volume/mix declined 5.6 percentage points, primarily driven by Easter timing shift (~90 bps) and Lunchables decline
  • Price increased 0.9 percentage points, with increases in North America and Emerging Markets partially offset by lower price in International Developed Markets
  • Higher pricing in certain categories to mitigate higher input costs, primarily in coffee
  • Foreign currency represented a negative 1.6 percentage point impact on net sales
  • Lower SG&A due to reduced variable compensation expense
  • Higher income tax expense due to less favorable geographic mix and corporate entity structure changes
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KHC YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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KHC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25
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KHC Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q3 25

“In today's uncertain times, we are committed to controlling the controllables and making the necessary investments to deliver quality, taste, and value to our consumers through our beloved brands. This quarter, we delivered results in line with our top line expectations despite growing market pressures. We are encouraged by these results, and we will build on the progress we have made to drive consistent growth and profitability.”

— Carlos Abrams-Rivera, Q1 2025 Earnings Press Release