Kraft Heinz Co (KHC) · Material Event (8-K) SEC Filing

EX-99.1 2 ex991-erq22026.htm EX-99.1 DocumentExhibit 99.1 Contacts Kraft Heinz Media Team Anne-Marie Megela (investors) media kraftheinz.com Anne-Marie.Megela kraftheinz.com KRAFT HEINZ REPORTS SECOND QUARTER 2026 RESULTS UPDATES 2026 FULL YEAR OUTLOOKSecond Quarter Highlights Net sales decreased 1.4% Organic Net Sales(1) decreased 1.3% Gross profit margin decreased 200 basis points to 32.4% Adjusted Gross Profit Margin(1) was flat at 34.1% Operating income was a loss of $6.4 billion, driven by non-cash impairment losses of $7.4 billion Adjusted Operating Income(1) decreased 18.4% to $1.0 billion Year-to-date net cash provided by operating activities was $2.1 billion, up 8.2% Free Cash Flow(1) was $1.7 billion, up 10.3% and Free Cash Flow Conversion(1) increased 27pp to 123% Year-to-date return of capital to stockholders was $0.9 billionPITTSBURGH CHICAGO Aug. 5, 2026 The Kraft Heinz Company (Nasdaq KHC) ( Kraft Heinz or the Company ) today reported financial results for the second quarter of 2026. We delivered another solid quarter, with results that exceeded our expectations across U.S. Retail, Global Away From Home, and Emerging Markets, said Steve Cahillane, CEO of Kraft Heinz. Our brands are resonating with consumers, and our share performance is improving. The progress we are seeing gives us the confidence to raise our Organic Net Sales outlook for the year. Building on this momentum, we are also increasing our incremental investments by $100 million, to approximately $700 million in 2026. We have seen that our brands respond well when we invest behind them. By accelerating these investments, we position the business even more favorably as we enter 2027. Cahillane concluded, I am proud of the progress our team has made. We are ahead of plan and remain focused on our ultimate goal to return the company to volume-led, sustainable and profitable growth. 1 Net Sales In millions Net Sales Organic Net Sales(1) June 27,2026 June 28, 2025 % Chg vs PY YoY GrowthRate Price Volume Mix For the Three Months Ended North America $ 4,626 $ 4,757 (2.7) % (2.7) % 1.1 pp (3.8) pp International Developed Markets 865 897 (3.5) % (0.7) % 0.7 pp (1.4) pp Emerging Markets(a) 771 698 10.4 % 8.5 % 4.5 pp 4.0 pp Kraft Heinz $ 6,262 $ 6,352 (1.4) % (1.3) % 1.3 pp (2.6) pp (a) Emerging Markets represents the aggregation of our West and East Emerging Markets ( WEEM ) and Asia Emerging Markets ( AEM ) operating segments. Net Sales In millions Net Sales Organic Net Sales(1) June 27,2026 June 28, 2025 % Chg vs PY YoY GrowthRate Price Volume Mix For the Six Months Ended North America $ 9,084 $ 9,245 (1.7) % (2.0) % 0.7 pp (2.7) pp International Developed Markets 1,708 1,714 (0.3) % (0.4) % 0.4 pp (0.8) pp Emerging Markets(a) 1,517 1,392 9.0 % 6.1 % 4.4 pp 1.7 pp Kraft Heinz $ 12,309 $ 12,351 (0.3) % (0.9) % 1.0 pp (1.9) pp (a) Emerging Markets represents the aggregation of our West and East Emerging Markets ( WEEM ) and Asia Emerging Markets ( AEM ) operating segments. Net Income (Loss) and Diluted EPS In millions, except per share data For the Three Months Ended For the Six Months Ended June 27,2026 June 28, 2025 % Chg vs PY June 27, 2026 June 28, 2025 % Chg vs PY Gross profit $ 2,028 $ 2,183 (7.1) % $ 4,247 $ 4,247 % Operating income (loss) (6,431) (7,974) 19.4 % (5,286) (6,778) 22.0 % Net income (loss) (5,460) (7,823) 30.2 % (4,661) (7,109) 34.4 % Net income (loss) attributable to common shareholders (5,460) (7,824) 30.2 % (4,662) (7,112) 34.4 % Diluted EPS $ (4.60) $ (6.60) 30.3 % $ (3.93) $ (5.98) 34.3 % Adjusted EPS(1) 0.56 0.69 (18.8) % 1.14 1.31 (13.0) % Adjusted Operating Income(1) $ 1,041 $ 1,276 (18.4) % $ 2,099 $ 2,475 (15.2) % 2Q2 2026 Financial Summary Net sales decreased 1.4 percent versus the year-ago period to $6.3 billion, including a 0.5 percentage point favorable impact from foreign currency and a 0.6 percentage point unfavorable impact from divestitures. Organic Net Sales(1) decreased 1.3 percent versus the prior year period. Price increased 1.3 percentage points versus the prior year period, with increases in each segment. Favorable price was primarily due to pricing taken in certain categories to mitigate higher input costs, primarily in coffee and ready-to-drink beverages. Volume mix declined 2.6 percentage points versus the prior year period, with declines in North America and International Developed Markets segments, partially offset by volume mix growth in the Emerging Markets segment. The unfavorable volume mix was primarily driven by declines in meats and spoonables, as well as a shift in Easter timing, which had an approximate 100 basis point impact. This was partially offset by an approximate 80 basis point benefit from inventory pull forward in the quarter. Operating Income (Loss) of $(6.4) billion improved 19.4 percent versus the year-ago period, primarily due to non-cash impairment losses that were $1.9 billion lower in the current year period. Adjusted Operating Income(1) decreased 18.4 percent versus the year-ago period to $1.0 billion, primarily due to increased advertising expenses, unfavorable volume mix, inflationary pressures in manufacturing and logistics costs, and higher variable compensation expense. These unfavorable impacts more than offset efficiency initiatives and higher price. Diluted EPS increased 30.3 percent versus the prior year period to $(4.60). This increase was primarily due to the favorable changes in operating income discussed above. Adjusted EPS(1) was $0.56, down 18.8 percent versus the prior year period, primarily driven by lower Adjusted Operating Income, which more than offset lower taxes on adjusted earnings. Net cash provided by (used for) operating activities was $2.1 billion, up 8.2 percent versus the year-ago period. This increase was primarily driven by favorable changes in working capital, primarily within accounts payable, due, in part, to improved payments terms, partially offset by increases in inventory. These impacts were partially offset by lower Adjusted Operating Income. Free Cash Flow(1) was $1.7 billion, up 10.3 percent versus the prior year period, driven by the same net cash provided by (used for) operating activities discussed above. Capital Return Year to date, the Company has paid $949 million in cash dividends. The Company s strong cash flow profile supports disciplined capital allocation across all priorities including investing in the business, sustaining the dividend, and reducing debt. This financial flexibility is viewed by the Company as a competitive advantage. The Company did not repurchase any shares under its publicly announced share repurchase program.3OutlookFor fiscal year 2026, the Company is updating its outlook. The Company now expects Organic Net Sales(1)(2) down 0.5 percent to down 2.0 percent versus the prior year. This outlook includes an approximate 100 basis point impact from incremental SNAP headwinds. Constant Currency Adjusted Operating Income(1)(2) down 16 percent to down 18 percent versus the prior year. This outlook contemplates an Adjusted Gross Profit Margin(1)(2) that is expected to be down 10 basis points to down 50 basis points versus the prior year, incremental investments of approximately $700 million compared to 2025, and an approximate 500 basis-point headwind from lapping lower incentive compensation. Adjusted EPS(1)(2) is expected to be in the range of $2.03 to $2.09. Additionally, the Company now expects an effective tax rate on Adjusted EPS to be approximately 24.5 percent, interest expense to be approximately $890 million, and other expense (income) to be approximately $200 million of income for the full year. Free Cash Flow Conversion(1)(2) of approximately 110 percent. Current and Prior Outlook Current Outlook Prior Outlook Organic Net Sales (2)% to (0.5)% (3.5)% to (1.5)% Constant Currency Adjusted Operating Income (18)% to (16)% (18)% to (14)% Adjusted Gross Profit Margin (50)bps to (10)bps (75)bps to (25)bps Adjusted EPS $2.03 to $2.09 $1.98 to $2.10 Effective Tax Rate on Adjusted EPS 24.5% 25% Interest Expense $890M $920M Other Expense (Income) $(200)M $(200)M Free Cash Flow Conversion 110% 100% End Notes(1)Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted EPS, Free Cash Flow, Free Cash Flow Conversion, and Net Leverage are non-GAAP financial measures. Please see discussion of non-GAAP financial measures and the reconciliations at the end of this press release for more information.4(2)Guidance for Organic Net Sales, Adjusted Gross Profit Margin, Constant Currency Adjusted Operating Income, Adjusted EPS, Free Cash Flow, and Free Cash Flow Conversion is provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items impacting comparability, including, but not limited to, the impact of currency, acquisitions and divestitures, divestiture-related license income, restructuring activities, deal costs, separation costs, unrealized losses (gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, equity award compensation expense, nonmonetary currency devaluation, and debt prepayment and extinguishment (benefit) costs, among other items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation of these measures without unreasonable effort.Earnings Discussion and Webcast InformationA pre-recorded management discussion of The Kraft Heinz Company's second quarter 2026 earnings is available at ir.kraftheinzcompany.com. The Company will host a live question-and-answer session beginning today at 9 00 a.m. Eastern Daylight Time. A webcast of the session will be accessible at ir.kraftheinzcompany.com.ABOUT THE KRAFT HEINZ COMPANYKraft Heinz (Nasdaq KHC) is one of the world s largest food and beverage companies, with approximately $25 billion in net sales in 2025 and a portfolio of iconic brands enjoyed by consumers in more than 40 countries. By investing in our capabilities and brands, including Heinz, Kraft, Philadelphia, Primal Kitchen, and Lunchables, we are unlocking the full power of our portfolio. We deliver high-quality, great-tasting, and affordable food for the consumers of today, while shaping the future of food. Learn more at www.kraftheinzcompany.com.5Forward-Looking StatementsThis press release contains a number of forward-looking statements. Words such as accelerate, anticipate, believe, commit, continue, expect, will, guidance, and outlook, and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the Company's plans, impacts of accounting standards and guidance, growth, legal matters, taxes, costs and cost savings, impairments, dividends, expectations, investments, innovations, opportunities, capabilities, execution, initiatives, and pipeline. These forward-looking statements reflect management's current expectations and are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company's control.Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, operating in a highly competitive industry the Company s ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation changes in the retail landscape or the loss of key retail customers changes in the Company's relationships with significant customers or suppliers, or in other business relationships the Company s ability to maintain, extend, and expand its reputation and brand image the Company s ability to effect the previously announced separation of Kraft Heinz into two independent publicly traded companies and to meet the conditions related thereto, including obtaining applicable regulatory approvals, if work related to the separation is resumed negative effects of the announcement pendency of the separation, including the current pause on work related to the separation, on the market price of the Company s securities and or on the Company s financial performance the Company s ability to leverage its brand value to compete against private label products the Company s ability to drive revenue growth in its key product categories or platforms, increase its market share, or add products that are in faster-growing and more profitable categories product recalls or other product liability claims climate change and legal or regulatory responses the Company s ability to identify, complete, or realize the benefits from strategic acquisitions, divestitures, alliances, joint ventures, or investments the Company's ability to successfully execute its strategic initiatives the impacts of the Company's international operations the Company's ability to protect intellectual property rights the Company s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve its competitiveness the influence of the Company's largest stockholder the Company's level of indebtedness, as well as our ability to comply with covenants under our debt instruments additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets foreign exchange rate fluctuations volatility in commodity, energy, and other input costs volatility in the market value of all or a portion of the commodity derivatives we use compliance with laws and regulations and related legal claims or regulatory enforcement actions failure to maintain an effective system of internal controls a downgrade in the Company's credit rating the impact of sales of the Company's common stock in the public market the impact of the Company s share repurchases or any change in the Company s share repurchase activity the Company s ability to continue to pay a regular dividend and the amounts of any such dividends disruptions in the global economy caused by geopolitical conflicts (including the ongoing conflicts in the Middle East), unanticipated business disruptions and natural events in the locations in which the Company or the Company's customers, suppliers, distributors, or regulators operate economic and political conditions in the United States and in various other nations where the Company does business (including inflationary pressures, the imposition 6of increased or new tariffs, instability in financial institutions, general economic slowdown, recession, or a potential U.S. federal government shutdown) changes in the Company's management team or other key personnel and the Company's ability to hire or retain key personnel or a highly skilled and diverse global workforce our dependence on information technology and systems, including service interruptions, misappropriation of data, or breaches of security increased pension, labor, and people-related expenses changes in tax laws and interpretations and the final determination of tax audits, including transfer pricing matters, and any related litigation volatility of capital markets and other macroeconomic factors and other factors. For additional information on these and other factors that could affect the Company's forward-looking statements, see the Company's risk factors, as they may be amended from time to time, set forth in its filings with the Securities and Exchange Commission ( SEC ). The Company disclaims and does not undertake any obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.We use our investor relations website, ir.kraftheinzcompany.com, as a routine channel for distribution of important, and often material, information about Kraft Heinz, including quarterly and annual earnings results and presentations, press releases and other announcements, webcasts, analyst presentations, investor days, sustainability initiatives, financial information, and corporate governance practices, as well as archives of past presentations and events. We encourage you to follow our investor relations website in addition to our filings with the SEC to receive timely information about the Company. The information on our website is not part of this press release and shall not be deemed to be incorporated by reference into any filings we make with the SEC.7Non-GAAP Financial MeasuresThe non-GAAP financial measures provided in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with accounting principles generally accepted in the United States of America ( GAAP ).To supplement the financial information provided, the Company has presented Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow, and Net Leverage which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net sales, net income (loss), operating income (loss), gross profit, diluted earnings per share ( EPS ), net cash provided by (used for) operating activities, or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.Management uses these non-GAAP financial measures to assist in comparing the Company s performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company s underlying operations. The Company believes Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted EPS provide important comparability of underlying operating results, allowing investors and management to assess the Company s operating performance on a consistent basis and Free Cash Flow and Net Leverage provide measures of the Company s core operating performance, the cash-generating capabilities of the Company s business operations, and are factors used in determining the Company s borrowing capacity and the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes.Management believes that presenting the Company s non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company s results. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting the Company s business than could be obtained absent these disclosures.8DefinitionsOrganic Net Sales is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. The Company calculates the impact of currency on net sales by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which the Company calculates the previous year's results using the current year's exchange rate.Adjusted Operating Income is defined as operating income (loss) excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains (losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized once realized, the gains and losses are recorded in the applicable segment s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters. The Company also presents Adjusted Operating Income on a constant currency basis (Constant Currency Adjusted Operating Income). The Company calculates the impact of currency on Adjusted Operating Income by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which it calculates the previous year's results using the current year's exchange rate.Adjusted Gross Profit, Adjusted Net Income (Loss), and Adjusted EPS are defined as gross profit, net income (loss), and diluted earnings per share, respectively, excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized losses (gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, losses (gains) on the sale of a business, other losses (gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment (benefit) costs, and certain significant discrete income tax items (e.g., U.S. and non-U.S. tax reform), and including when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis. Adjusted Gross Profit Margin is defined as Adjusted Gross Profit divided by net sales.Net Leverage is defined as debt less cash, cash equivalents and short-term investments divided by Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) from continuing operations before interest expense, other expense (income), provision for (benefit from) income taxes, and depreciation and amortization (excluding restructuring activities) in addition to these adjustments, the Company excludes, when they occur, the impacts of divestiture-related license income, restructuring activities, deal costs, separation costs, unrealized losses (gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities).Free Cash Flow is defined as net cash provided by (used for) operating activities less capital expenditures. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.9 Schedule 1 The Kraft Heinz CompanyCondensed Consolidated Statements of Income(in millions, except per share data)(Unaudited) For the Three Months Ended For the Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Net sales $ 6,262 $ 6,352 $ 12,309 $ 12,351 Cost of products sold 4,234 4,169 8,062 8,104 Gross profit 2,028 2,183 4,247 4,247 Selling, general and administrative expenses, excluding impairment losses 1,107 891 2,168 1,759 Goodwill impairment losses 2,441 6,694 2,441 6,694 Intangible asset impairment losses 4,911 2,572 4,924 2,572 Selling, general and administrative expenses 8,459 10,157 9,533 11,025 Operating income (loss) (6,431) (7,974) (5,286) (6,778) Interest expense (income) (31) 240 205 469 Other expense (income) (24) (47) (125) (98) Income (loss) before income taxes (6,376) (8,167) (5,366) (7,149) Provision for (benefit from) income taxes (916) (344) (705) (40) Net income (loss) (5,460) (7,823) (4,661) (7,109) Net income (loss) attributable to noncontrolling interest 1 1 3 Net income (loss) attributable to common shareholders $ (5,460) $ (7,824) $ (4,662) $ (7,112) Basic shares outstanding 1,186 1,185 1,186 1,190 Diluted shares outstanding 1,186 1,185 1,186 1,190 Per share data applicable to common shareholders Basic earnings (loss) per share $ (4.60) $ (6.60) $ (3.93) $ (5.98) Diluted earnings (loss) per share (4.60) (6.60) (3.93) (5.98) 10 Schedule 2 The Kraft Heinz Company Reconciliation of Net Sales to Organic Net Sales For the Three Months Ended (dollars in millions) (Unaudited) Net Sales Currency Acquisitions and Divestitures Organic Net Sales Price Volume Mix June 27, 2026 North America $ 4,626 $ $ $ 4,626 International Developed Markets 865 19 846 Emerging Markets 771 36 735 Kraft Heinz $ 6,262 $ 55 $ $ 6,207 June 28, 2025 North America $ 4,757 $ $ $ 4,757 International Developed Markets 897 45 852 Emerging Markets 698 20 678 Kraft Heinz $ 6,352 $ 20 $ 45 $ 6,287 Year-over-year growth rates North America (2.7) % 0.0 pp 0.0 pp (2.7) % 1.1 pp (3.8) pp International Developed Markets (3.5) % 2.1 pp (4.9) pp (0.7) % 0.7 pp (1.4) pp Emerging Markets 10.4 % 1.9 pp 0.0 pp 8.5 % 4.5 pp 4.0 pp Kraft Heinz (1.4) % 0.5 pp (0.6) pp (1.3) % 1.3 pp (2.6) pp 11 Schedule 3 The Kraft Heinz Company Reconciliation of Net Sales to Organic Net Sales For the Six Months Ended(dollars in millions) (Unaudited) Net Sales Currency Acquisitions and Divestitures Organic Net Sales Price Volume Mix June 27, 2026 North America $ 9,084 $ 20 $ $ 9,064 International Developed Markets 1,708 83 1,625 Emerging Markets 1,517 80 1,437 Kraft Heinz $ 12,309 $ 183 $ $ 12,126 June 28, 2025 North America $ 9,245 $ $ $ 9,245 International Developed Markets 1,714 82 1,632 Emerging Markets 1,392 38 1,354 Kraft Heinz $ 12,351 $ 38 $ 82 $ 12,231 Year-over-year growth rates North America (1.7) % 0.3 pp 0.0 pp (2.0) % 0.7 pp (2.7) pp International Developed Markets (0.3) % 4.9 pp (4.8) pp (0.4) % 0.4 pp (0.8) pp Emerging Markets 9.0 % 2.9 pp 0.0 pp 6.1 % 4.4 pp 1.7 pp Kraft Heinz (0.3) % 1.2 pp (0.6) pp (0.9) % 1.0 pp (1.9) pp 12 Schedule 4 The Kraft Heinz CompanyReconciliation of Operating Income (Loss) to Adjusted Operating Income(dollars in millions)(Unaudited) For the Three Months Ended For the Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Operating income (loss) $ (6,431) $ (7,974) $ (5,286) $ (6,778) Restructuring activities 9 31 4 Unrealized losses (gains) on commodity hedges 101 (16) (77) (17) Impairment losses 7,352 9,266 7,365 9,266 Separation costs 10 66 Adjusted Operating Income $ 1,041 $ 1,276 $ 2,099 $ 2,475 Segment Adjusted Operating Income North America $ 988 $ 1,173 $ 1,962 $ 2,274 International Developed Markets 124 136 257 263 Total Segment Adjusted Operating Income 1,112 1,309 2,219 2,537 Emerging Markets Segment Adjusted Operating Income(a) 107 100 202 199 General corporate expenses (178) (133) (322) (261) Adjusted Operating Income $ 1,041 $ 1,276 $ 2,099 $ 2,475 (a) Segment Adjusted Operating Income for Emerging Markets, which represents the combination of our WEEM and AEM operating segments, is defined and presented consistently with the Segment Adjusted Operating Income of our reportable segments - North America and International Developed Markets.13 Schedule 5 The Kraft Heinz CompanyReconciliation of Adjusted Operating Income to Constant Currency Adjusted Operating IncomeFor the Three Months Ended(dollars in millions)(Unaudited) Adjusted Operating Income Currency Constant Currency Adjusted Operating Income June 27, 2026 North America $ 988 $ $ 988 International Developed Markets 124 2 122 Emerging Markets 107 4 103 General corporate expenses (178) (2) (176) Kraft Heinz $ 1,041 $ 4 $ 1,037 June 28, 2025 North America $ 1,173 $ $ 1,173 International Developed Markets 136 136 Emerging Markets 100 6 94 General corporate expenses (133) (133) Kraft Heinz $ 1,276 $ 6 $ 1,270 Year-over-year growth rates North America (15.8) % 0.0 pp (15.8) % International Developed Markets (9.1) % 1.1 pp (10.2) % Emerging Markets 6.7 % (2.7) pp 9.4 % General corporate expenses 33.5 % 0.7 pp 32.8 % Kraft Heinz (18.4) % 0.0 pp (18.4) % 14 Schedule 6 The Kraft Heinz CompanyReconciliation of Adjusted Operating Income to Constant Currency Adjusted Operating IncomeFor the Six Months Ended(dollars in millions)(Unaudited) Adjusted Operating Income Currency Constant Currency Adjusted Operating Income June 27, 2026 North America $ 1,962 $ 4 $ 1,958 International Developed Markets 257 11 246 Emerging Markets 202 9 193 General corporate expenses (322) (7) (315) Kraft Heinz $ 2,099 $ 17 $ 2,082 June 28, 2025 North America $ 2,274 $ $ 2,274 International Developed Markets 263 263 Emerging Markets 199 10 189 General corporate expenses (261) (261) Kraft Heinz $ 2,475 $ 10 $ 2,465 Year-over-year growth rates North America (13.7) % 0.2 pp (13.9) % International (2.4) % 3.9 pp (6.3) % Emerging Markets 1.4 % (0.9) pp 2.3 % General corporate expenses 23.5 % 2.3 pp 21.2 % Kraft Heinz (15.2) % 0.3 pp (15.5) % 15 Schedule 7 The Kraft Heinz CompanyReconciliation of GAAP Results to Non-GAAP Results(dollars in millions)(Unaudited) For the Three Months Ended June 27, 2026 Gross profit Selling, general and administrative expenses Operating income (loss) Interest expense (income) Other expense (income) Income (loss) before income taxes Provision for (benefit from) income taxes Net income (loss) Net income (loss) attributable to noncontrolling interest Net income (loss) attributable to common shareholders Diluted EPS GAAP Results $ 2,028 $ 8,459 $ (6,431) $ (31) $ (24) $ (6,376) $ (916) $ (5,460) $ $ (5,460) $ (4.60) Items Affecting Comparability Restructuring activities 7 (2) 9 9 2 7 7 0.01 Unrealized losses (gains) on commodity hedges 101 101 101 25 76 76 0.06 Impairment losses (7,352) 7,352 7,352 1,153 6,199 6,199 5.23 Separation costs (10) 10 10 4 6 6 Nonmonetary currency devaluation (4) 4 4 4 Debt prepayment and extinguishment (benefit) costs 265 (37) (228) (57) (171) (171) (0.14) Adjusted Non-GAAP Results $ 2,136 $ 1,041 $ 661 $ 0.56 16 Schedule 8 The Kraft Heinz CompanyReconciliation of GAAP Results to Non-GAAP Results(dollars in millions)(Unaudited) For the Three Months Ended June 28, 2025 Gross profit Selling, general and administrative expenses Operating income (loss) Interest expense (income) Other expense (income) Income (loss) before income taxes Provision for (benefit from) income taxes Net income (loss) Net income (loss) attributable to noncontrolling interest Net income (loss) attributable to common shareholders Diluted EPS GAAP Results $ 2,183 $ 10,157 $ (7,974) $ 240 $ (47) $ (8,167) $ (344) $ (7,823) $ 1 $ (7,824) $ (6.60) Items Affecting Comparability Restructuring activities 1 1 (10) 10 3 7 7 0.01 Unrealized losses (gains) on commodity hedges (16) (16) (16) (4) (12) (12) (0.01) Impairment losses (9,266) 9,266 9,266 626 8,640 8,640 7.28 Nonmonetary currency devaluation (7) 7 7 7 0.01 Certain significant discrete income tax items (3) 3 3 Adjusted Non-GAAP Results $ 2,168 $ 1,276 $ 822 $ 0.69 17 Schedule 9 The Kraft Heinz CompanyReconciliation of GAAP Results to Non-GAAP Results(dollars in millions)(Unaudited) For the Six Months Ended June 27, 2026 Gross profit Selling, general and administrative expenses Operating income (loss) Interest expense (income) Other expense (income) Income (loss) before income taxes Provision for (benefit from) income taxes Net income (loss) Net income (loss) attributable to noncontrolling interest Net income (loss) attributable to common shareholders Diluted EPS GAAP Results $ 4,247 $ 9,533 $ (5,286) $ 205 $ (125) $ (5,366) $ (705) $ (4,661) $ 1 $ (4,662) $ (3.93) Items Affecting Comparability Restructuring activities 30 (1) 31 45 (14) (3) (11) (11) (0.01) Unrealized losses (gains) on commodity hedges (77) (77) (77) (19) (58) (58) (0.05) Impairment losses (7,365) 7,365 7,365 1,153 6,212 6,212 5.24 Separation costs (66) 66 66 15 51 51 0.04 Losses (gains) on sale of business 3 (3) 26 (29) (29) (0.02) Nonmonetary currency devaluation (16) 16 16 16 0.01 Debt prepayment and extinguishment costs 265 (37) (228) (57) (171) (171) (0.14) Adjusted Non-GAAP Results $ 4,200 $ 2,099 $ 1,349 $ 1.14 18 Schedule 10 The Kraft Heinz CompanyReconciliation of GAAP Results to Non-GAAP Results(dollars in millions)(Unaudited) For the Six Months Ended June 28, 2025 Gross profit Selling, general and administrative expenses Operating income (loss) Interest expense (income) Other expense (income) Income (loss) before income taxes Provision for (benefit from) income taxes Net income (loss) Net income (loss) attributable to noncontrolling interest Net income (loss) attributable to common shareholders Diluted EPS GAAP Results $ 4,247 $ 11,025 $ (6,778) $ 469 $ (98) $ (7,149) $ (40) $ (7,109) $ 3 $ (7,112) $ (5.98) Items Affecting Comparability Restructuring activities (1) (5) 4 (10) 14 4 10 10 0.01 Unrealized losses (gains) on commodity hedges (17) (17) (17) (4) (13) (13) (0.01) Impairment losses (9,266) 9,266 9,266 626 8,640 8,640 7.26 Nonmonetary currency devaluation (21) 21 21 21 0.02 Certain significant discrete income tax items (16) 16 16 0.01 Adjusted Non-GAAP Results $ 4,229 $ 2,475 $ 1,565 $ 1.31 19 Schedule 11 The Kraft Heinz CompanyAdjusted Gross Profit Margin(dollars in millions)(Unaudited) For the Three Months Ended For the Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Adjusted Gross Profit $ 2,136 $ 2,168 $ 4,200 $ 4,229 Net sales 6,262 6,352 12,309 12,351 Adjusted Gross Profit Margin 34.1 % 34.1 % 34.1 % 34.2 % 20 Schedule 12 The Kraft Heinz CompanyKey Drivers of Change in Adjusted EPS(Unaudited) For the Three Months Ended June 27, 2026 June 28, 2025 $ Change Key drivers of change in Adjusted EPS Results of operations(a)(b) $ 0.66 $ 0.80 $ (0.14) Interest expense (income) (0.15) (0.15) Other expense (income) 0.04 0.04 Effective tax rate 0.01 0.01 Adjusted EPS $ 0.56 $ 0.69 $ (0.13) (a) Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.04 for the three months ended June 27, 2026 and June 28, 2025.(b) Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.01 for the three months ended June 27, 2026 and June 28, 2025.21 Schedule 13 The Kraft Heinz CompanyKey Drivers of Change in Adjusted EPS(Unaudited) For the Six Months Ended June 27, 2026 June 28, 2025 $ Change Key drivers of change in Adjusted EPS Results of operations(a)(b) $ 1.29 $ 1.52 $ (0.23) Interest expense (income) (0.29) (0.29) Other expense (income) 0.08 0.08 Effective tax rate 0.06 0.06 Adjusted EPS $ 1.14 $ 1.31 $ (0.17) (a) Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.08 for the six months ended June 27, 2026 and June 28, 2025.(b) Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.02 for the six months ended June 27, 2026 and June 28, 2025.22 Schedule 14 The Kraft Heinz CompanyCondensed Consolidated Balance Sheets(in millions, except per share data)(Unaudited) June 27, 2026 December 27, 2025 ASSETS Cash and cash equivalents $ 2,419 $ 2,615 Trade receivables, net 2,286 2,254 Inventories 3,308 3,167 Prepaid expenses 266 291 Marketable securities 262 1,060 Other current assets 710 588 Assets held for sale 152 Total current assets 9,251 10,127 Property, plant and equipment, net 7,199 7,318 Goodwill 19,714 22,179 Intangible assets, net 32,372 37,529 Other non-current assets 4,529 4,633 TOTAL ASSETS $ 73,065 $ 81,786 LIABILITIES AND EQUITY Current portion of long-term debt $ 1,382 $ 1,908 Accounts payable 4,478 4,308 Accrued marketing 990 801 Interest payable 271 298 Other current liabilities 1,595 1,455 Liabilities held for sale 8 Total current liabilities 8,716 8,778 Long-term debt 17,619 19,311 Deferred income taxes 7,848 9,022 Accrued postemployment costs 128 131 Long-term deferred income 1,291 1,321 Other non-current liabilities 1,333 1,434 TOTAL LIABILITIES 36,935 39,997 Redeemable noncontrolling interest 13 12 Equity Common stock, $0.01 par value 12 12 Additional paid-in capital 50,392 51,287 Retained earnings (deficit) (9,291) (4,629) Accumulated other comprehensive income (losses) (2,458) (2,370) Treasury stock, at cost (2,649) (2,636) Total shareholders' equity 36,006 41,664 Noncontrolling interest 111 113 TOTAL EQUITY 36,117 41,777 TOTAL LIABILITIES AND EQUITY $ 73,065 $ 81,786 23 Schedule 15 The Kraft Heinz CompanyCondensed Consolidated Statements of Cash Flows(in millions)(Unaudited) For the Six Months Ended June 27, 2026 June 28, 2025 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (4,661) $ (7,109) Adjustments to reconcile net income (loss) to operating cash flows Depreciation and amortization 506 472 Divestiture-related license income (26) (26) Equity award compensation expense 53 53 Deferred income tax provision (benefit) (1,167) (595) Postemployment benefit plan contributions (8) (8) Goodwill and intangible asset impairment losses 7,365 9,266 Nonmonetary currency devaluation 16 21 Loss (gain) on sale of business (3) Loss (gain) on extinguishment of debt (265) Other items, net (124) (28) Changes in current assets and liabilities Trade receivables (61) (123) Inventories (228) (164) Accounts payable 392 109 Other current assets (19) 1 Other current liabilities 318 60 Net cash provided by (used for) operating activities 2,088 1,929 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (429) (425) Purchases of marketable securities (105) (1,033) Proceeds from sale of marketable securities 910 45 Proceeds from sale of business, net of cash disposed and working capital adjustments 146 9 Other investing activities, net 29 56 Net cash provided by (used for) investing activities 551 (1,348) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of long-term debt (2,981) (676) Proceeds from issuance of long-term debt 1,152 1,620 Dividends paid (949) (951) Repurchases of common stock (27) (435) Other financing activities, net (77) 19 Net cash provided by (used for) financing activities (2,882) (423) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (12) 68 Cash, cash equivalents, and restricted cash Net increase (decrease) (255) 226 Balance at beginning of period 2,944 1,486 Balance at end of period $ 2,689 $ 1,712 24 Schedule 16 The Kraft Heinz CompanyReconciliation of Net Cash Provided By (Used For) Operating Activities to Free Cash Flow(in millions)(Unaudited) For the Six Months Ended June 27, 2026 June 28, 2025 Net cash provided by (used for) operating activities $ 2,088 $ 1,929 Capital expenditures (429) (425) Free Cash Flow $ 1,659 $ 1,504 Adjusted Net Income (Loss) $ 1,349 $ 1,565 Free Cash Flow Conversion 123 % 96 % 25