| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 6.0K | 0.8% |
| Total Income | 6.0K | 0.8% |
| Expenditure | 4.9K | 2.1% |
| PBT | 1.0K | 0.8% |
| Net Profit | 798.00 | 12.1% |
| OPM | 18.93% | 1.00pp |
| NPM | 13.20% | 1.33pp |
| EPS | 0.67 | 11.7% |
Kraft Heinz Reports Q1 2026 Results; Maintains 2026 Full Year Outlook
06 May 2026 · 6 May, 4:37 pm
Summary
The Kraft Heinz Company reported its financial results for the first quarter of 2026, showing a net sales increase of 0.8%. However, Organic Net Sales decreased by 0.4%. The company's operating income saw a decrease of 4.3%, while diluted EPS increased by 13.6%. Kraft Heinz is reaffirming its outlook for fiscal year 2026, expecting a decrease in Organic Net Sales and Constant Currency Adjusted Operating Income.
Key Highlights
- 1
Kraft Heinz's net sales increased by 0.8% in the first quarter of 2026.
- 2
Gross profit margin increased by 230 basis points to 36.7%, while Adjusted Gross Profit Margin decreased 30 basis points to 34.1%.
- 3
Operating income decreased by 4.3% to $1.1 billion, and Adjusted Operating Income decreased by 11.8% to $1.1 billion.
- 4
Year-to-date net cash provided by operating activities increased by 39.7% to $1.0 billion.
- 5
Free Cash Flow increased by 58.9% to $0.8 billion, with Free Cash Flow Conversion increasing 46 percentage points to 111%.
- 6
Diluted EPS increased 13.6 percent versus the prior year period to $0.67.
- 7
The company reaffirms its outlook for fiscal year 2026, expecting Organic Net Sales to be down 1.5 percent to down 3.5 percent.
Management Comments
Steve Cahillane
“Our first quarter results demonstrate steady progress, and I am encouraged by the early signs of momentum we’re building. The investments we made in 2025 are now driving early traction, with improving market share trends, particularly within must-win parts of our portfolio like Taste Elevation. This is proof that our brands respond well when we invest behind them.” “Our goal is to ultimately deliver profitable growth through volume and market share recovery, while continuing to deliver strong Free Cash Flow. In 2026, we are focused on turning around our U.S. business and accelerating growth in our international markets. Our strategy is supported by incrementally investing the previously announced $600 million in the business, leveraging the Heinz brand, and continuing to capture white-space opportunities across Emerging Markets.” "While we are encouraged by the strong start to the year, we are reiterating our 2026 outlook. This reflects an operating environment that remains volatile, with increasing inflationary pressures and persistently low consumer sentiment. At the same time, we are retaining the flexibility to increase investments in areas that are delivering strong returns."
Informational and educational content only. Not investment advice.