| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 6.2K | 1.8% | 2.3% |
| Total Income | 6.2K | 1.8% | 2.3% |
| Expenditure | 5.2K | 63.6% | 19.6% |
| PBT | 807.00 | 109.9% | 385.2% |
| Net Profit | 615.00 | 107.9% | 312.1% |
| OPM | 16.43% | 18.02pp | |
| NPM | 9.86% | 14.40pp | |
| EPS | 0.52 | 107.9% | 316.7% |
Kraft Heinz Reports Q3 2025 Results; Updates Full Year 2025 Outlook
04 May 2026 · 4 May, 8:33 am
Summary
The Kraft Heinz Company reported its third quarter 2025 financial results, with net sales decreasing by 2.3% to $6.2 billion and Organic Net Sales declining by 2.5%. The company's operating income increased significantly due to prior year impairment losses, while Adjusted Operating Income decreased due to inflationary pressures and unfavorable volume/mix. Kraft Heinz is updating its full year 2025 outlook, expecting Organic Net Sales to be down 3.0 to 3.5 percent and Adjusted EPS in the range of $2.50 to $2.57. The company's separation into two independent entities is expected to close in the second half of 2026.
Key Highlights
- 1
Kraft Heinz's net sales decreased by 2.3% to $6.2 billion in the third quarter of 2025.
- 2
Organic Net Sales decreased by 2.5% compared to the prior year period.
- 3
Gross profit margin decreased by 230 basis points to 31.9%, while Adjusted Gross Profit Margin decreased by 200 basis points to 32.3%.
- 4
Operating income increased 1,114.9% to $1.0 billion, primarily driven by non-cash impairment losses of $1.4 billion in the prior year.
- 5
Adjusted Operating Income decreased 16.9% to $1.1 billion due to inflationary pressures and unfavorable volume/mix.
- 6
Year-to-date net cash provided by operating activities was $3.1 billion, up 10.4%, and Free Cash Flow was $2.5 billion, up 23.3%.
- 7
The company is on track to separate into two companies in the second half of 2026.
Management Comments
Carlos Abrams-Rivera
"Our third quarter results reflect a modest year-over-year improvement in our top-line performance relative to the first half of the year," said Carlos Abrams-Rivera, CEO of Kraft Heinz. "While the operating environment remains challenging, we’re seeing improvement driven in part by targeted investments we’re making to deliver superior and affordable products to our consumers." "Informed by insights from our Brand Growth System, we’re making strategic investments in marketing and R&D to strengthen our portfolio through product enhancements, more effective communication with consumers, and stronger execution. We’re funding these investments through our best-in-class levels of productivity, while at the same time generating strong cash flow, maintaining our target Net Leverage ratio, and returning capital to stockholders." Abrams-Rivera continued, “Looking ahead, we are on track to separate into two companies in the second half of 2026. I’m confident the separation will allow each business to better focus resources, improve execution, reduce complexity, and drive further efficiencies. As we navigate this transition, we remain focused on driving performance within our current business, and ultimately positioning both companies for long-term success.”
Informational and educational content only. Not investment advice.