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Showing posts with label KHC. Show all posts
Showing posts with label KHC. Show all posts

Friday, August 25, 2023

Unusual Options Activity Fri 8/25/23

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:
KHC Weekly Aug25 34 calls (volume: 12.9K, open int: 300, implied vol: ~30%, prev day implied vol: 20%). 1240 contracts traded in a single transaction. Co is expected to report earnings early November.
ALKS Nov 29 calls (volume: 1510, open int: 0, implied vol: ~48%, prev day implied vol: 39%). 1500 contracts traded in a single transaction. Sarissa Capital lowers active stake to 4.997% following the sale of more than 5.7 min shares (7/27-8/24 transaction dates). Co is expected to report earnings late October.

Bearish Put Activity:
PLTR  Weekly Aug25 14 puts (volume: 35.0K, open int: 23.8K, implied vol: ~125%, prev day implied vol: 72%). 1900 contracts traded in a single transaction. Co is expected to report earnings early November,
SPWR Weekly Aug25 7 puts (volume: 3870, open int: 620, implied vol: ~102%, prev day implied vol: 74%). Co is expected to report earnings early November.
SPWH Sep 5 puts (volume: 2200, open int: 210, implied vol: ~62%, prev day implied vol: 51%). Co is confirmed to report earnings September 6 before the open.
Sentiment: The CBOE Put/Call ratio is currently: 1.12, VIX: (16.17, -1.03, -6.0%).
September 15 is options expiration -- the last day to trade September equity options.

Tuesday, August 15, 2023

Berkshire Hathaway (Warren Buffett) discloses updated portfolio positions in 13F filing

New DHI NVR LEN positions, Exited MCK MMC, Lowered ATVI GM CVX holdings
Highlights from Q2 2023 filing as compared to Q1 2023:
  • New positions in: DHI (~5.97 mln shares), LEN (~0.15 mln), NVR (~0.01 mln)
  • Increased positions in: OXY (affirmed increased to ~224.13 mln shares from ~211.71 mln shares), COF (to ~12.47 mln from ~9.92 mln)
  • Maintained positions in: BAC (~1032.85 mln shares), AAPL (~915.56 mln shares), KO (~400 mln shares), KHC  (~325.63 mln shares), AXP (~151.61 mln shares), HPQ (~120.95 mln shares), DVA (~36.1 mln shares), MCO (~24.67 mln shares)
  • Closed positions in: MCK (from ~2.29 mln shares), MMC (from ~0.4 mln), VTS (from ~0.05 mln)
  • Decreased positions in: ATVI (to ~14.66 mln shares from ~49.44 mln shares), GM (to ~22 mln from ~40 mln), CVX (to ~123.12 mln from ~132.41 mln), GL (to ~2.52 mln from ~6.35 mln), CE (to ~5.36 mln from ~8.82 mln)

Tuesday, May 17, 2022

BRK.A Berkshire Hathaway (Warren Buffett) : updated portfolio positions in 13F filing

Affirms OXY HPQ positions.
New C ALLY CE PARA CE MCK positions.
Exited WFC BMY ABBV


Highlights from 2022 Q1 filing as compared to Q4 2021:
  • New positions in: OXY (~136.37 mln shares), HPQ (~104.48 mln), PARA (~68.95 mln), C (~55.16 mln), ALLY (~8.97 mln), CE (~7.88 mln), MCK (~2.92 mln), MKL (~0.42 mln)
  • Increased positions in: CVX (to ~159.18 mln shares from ~38.25 mln shares), ATVI (to ~64.32 mln from ~14.66 mln), FWONK (to ~7.72 mln from ~2.12 mln), FND (to ~4.78 mln from ~0.84 mln), GM (to ~62.05 mln from ~60 mln) RH (to ~2.17 mln from ~1.82 mln)
  • Maintained positions in: BAC (~1010.1 mln shares), AAPL (~890.92 mln shares), KO (~400 mln shares), KHC  (~325.63 mln shares), AXP (~151.61 mln shares), USB (~126.42 mln shares), DVA (~36.1 mln shares), MCO (~24.67 mln shares)
  • Closed positions in: BMY (from ~5.2 mln), ABBV (from ~3.03 mln), WFC (from ~0.68 mln)
  • Decreased positions in: VZ (to ~1.38 mln shares from ~158.82 mln shares), STOR (to ~14.75 mln from ~24.42 mln), RPRX (to ~1.5 mln from ~8.65 mln), KR (to ~57.99 mln from ~61.41 mln)

Friday, February 14, 2020

Kraft Heinz (KHC) downgraded to junk by Fitch

(Bloomberg)—Kraft Heinz Co., the iconic food giant created in a merger five years ago, was downgraded to junk by Fitch Ratings, raising fresh worries among investors that a slowing economy could threaten the broader corporate bond market.

The packaged-food company was cut one level to BB+, its first high-yield rating. Similar action from S&P Global Ratings or Moody’s Investors Service would officially dub Kraft Heinz as a fallen angel, taking it out of investment-grade indexes.


Though Kraft Heinz, with just under $30 billion of debt, is a relatively small investment-grade issuer, it would become one of the top three in high yield if another credit rater follows Fitch. It’s just one of many companies that have wound up with a massive debt load as the result of deals, jeopardizing credit ratings in the process.

The food giant, created in a merger orchestrated by Warren Buffett and the private equity firm 3G Capital, is in the midst of a turnaround as its brands fall out of favor with consumers. It reported a drop in fourth-quarter sales Thursday that sent its bonds and stock tumbling, the latest sign that the company’s turnaround plan still has a long way to go.

“Kraft is to investment grade as Velveeta is to cheese,” said Christian Hoffmann, a portfolio manager at Thornburg Investment Management. “The ingredients dictate what something is and Kraft Heinz is junk.”

Fitch cut the company one level to its highest junk rating and has a stable outlook. It said Kraft Heinz may need to divest a sizable portion of its business in order to reduce debt. Kraft Heinz also needs to cut its dividend, Fitch said in August, but the company said Thursday it would maintain the annual $2 billion payout to shareholders.

“We believe it’s important to Kraft Heinz shareholders to maintain our dividend during this time of transformation,” Michael Mullen, a spokesman for the company, said in an emailed statement. Kraft Heinz remains committed to reducing leverage “over time,” he said. The company plans to release a more detailed turnaround plan around the time of its next earnings report in early May.

Kraft Heinz is one of many companies with BBB ratings, the lowest level of investment grade, which now comprises half of the broader $5.9 trillion market. It’s grown steadily since the financial crisis, as a decade of low interest rates prompted companies to load up on debt for mergers and acquisitions, often at the expense of credit ratings.

But a wave of fallen angels, which some investors fear, has yet to follow. Many strategists contend that BBB companies have the ability to defend their investment-grade ratings, whether by selling assets or cutting dividends. Companies like General Electric Co. and AT&T Inc. have done just that to stave off downgrades.

Kraft Heinz debt is already on the way to trading like junk. Its 4.625% bonds due 2029 now yield 3.6%, compared to the 2.88% for the average BBB company with similar duration. It’s the worst-performing issuer in both the U.S. and European markets Friday, and the cost to protect its debt against default has spiked to levels last seen in October.

Thursday, February 13, 2020

Kraft Heinz (KHC) reported earnings on Thur 13 Feb 20 (b/o)


  • Barron's Feb 7 reco below

** charts after earnings **


  








  • Barron's recommended KHC just a few days before earnings, Feb. 7:

Kraft Heinz beats by $0.04, misses on revs

  • Reports Q4 (Dec) earnings of $0.72 per share, excluding non-recurring items, $0.04 better than the S&P Capital IQ Consensus of $0.68; revenues fell 5.2% year/year to $6.54 bln vs the $6.61 bln S&P Capital IQ Consensus.
  • Pricing increased 2.0 percentage points versus the prior year period, with higher pricing in all business segments except Canada. Volume/mix decreased 4.2 percentage points, primarily driven by volume/mix declines in the US and, to a lesser extent, Rest of World markets that more than offset growth in Canada and EMEA.
  • United States net sales were $4.7 bln, down 2.7% versus the year-ago period.
  • Rest of World net sales of $708 mln decreased 10.1% versus the year-ago period, including a negative 5.2 percentage point impact from currency and a negative 3.3 percentage point impact from the India nutritional beverages divestiture. Organic Net Sales decreased 1.6% versus the year-ago period.
  • Monday, February 10, 2020

    Earnings this week : Feb 10 - 14, 20 (wk 7)

    Monday (Feb 10)
    • Morning: AGN AVYA BIP CNA DO EPC GBDC IVC L MCY QSR
    • Afternoon: AMKR BLKB BHF BRX ELY CHGG CMP DVA EEFT RE FRT FLDM IIIV IIVI JCOM KMPR LMNX MELI MESA MIME MOH OMF PSEC RPD RNG STE VRNS VOYA WTS XPO

    Tuesday (Feb 11)
    • Morning: AN CRL CEIX CRTO DBD D EXC GT HAS HLT INGR JLL LCII LPX MMYT MLM MAS MLCO NNN OMC ONDK SEE ST FLOW TGNA UAA USFD VIRT
    Mon pm & Tue am https://finviz.com/screener.ashx?v=211&t=AMKR,BLKB,BHF,BRX,ELY,CHGG,CMP,DVA,EEFT,RE,FRT,FLDM,IIIV,IIVI,JCOM,KMPR,LMNX,MELI,MESA,MIME,MOH,OMF,PSEC,RPD,RNG,STE,VRNS,VOYA,WTS,XPO,AN,CRL,CEIX,CRTO,DBD,D,EXC,GT,HAS,HLT,INGR,JLL,LCII,LPX,MMYT,MLM,MAS,MLCO,NNN,OMC,ONDK,SEE,ST,FLOW,TGNA,UAA,USFD,VIRT&ta=0&o=-volume
    • Afternoon: ACCO AKAM ACGL AIZ BXMT CNO CPSI DCP DENN DIOD DEI EXAS PEAK NSP KRNT LSCC LYFT NCR PVG PRI REXR TGH UDR VREX VNOM WU

    Wednesday (Feb 12)
    • Morning: AB ARCC GOLD BG CVE ECOM CIM CME CIGI CVS CYBR GPN NSIT IPG IQV LAD TAP MCO NBL RDWR SHOP TEVA TW TRVG
    Tue pm & Wed am https://finviz.com/screener.ashx?v=211&t=ACCO,AKAM,ACGL,AIZ,BXMT,CNO,CPSI,DCP,DENN,DIOD,DEI,EXAS,PEAK,NSP,KRNT,LSCC,LYFT,NCR,PVG,PRI,REXR,TGH,UDR,VREX,VNOM,WU,AB,ARCC,GOLD,BG,CVE,ECOM,CIM,CME,CIGI,CVS,CYBR,GPN,NSIT,IPG,IQV,LAD,TAP,MCO,NBL,RDWR,SHOP,TEVA,TW,TRVG&ta=0&o=-volume
    • Afternoon: AKR ATUS AEL ANDE NLY AM AR AMAT ARES ASGN AVLR NTB BRKR CDNS CTL CF CHNG CHEF CSCO COHU CPA CXW EFX EQIX EQC FR FOSL FCPT FTSI HR HUBS IFF KGC LPI MFC MRO MGM NTAP NWE NUS PGRE PEGA PRSP PS QLYS QDEL QUOT RDFN REG SSNC STAG SLF SPWR TCO TTGT TRMB TRIP TCX TYL WCN WELL

    Thursday (Feb 13)
    • Morning: AER AGIO BABA ALKS ALE AIMC AIG BPMC BWA BAM GTLS CBB DAN DLPH DUK EEX DAVA FIS FAF FTS GNRC HE HIMX HII HUN INCY IPGP IRM IRWD KELYA KHC LH LECO MTRN NGD NMRK NICE NVMI PATK PBF PBFX PEP POOL PDS R SSTK SITC SON TRP TPX THS TUFN WM WSO WST WEX WH YETI ZBRA ZTS
    Wed pm & Thur am:  https://finviz.com/screener.ashx?v=211&t=AKR,ATUS,AEL,ANDE,NLY,AM,AR,AMAT,ARES,ASGN,AVLR,NTB,BRKR,CDNS,CTL,CF,CHNG,CHEF,CSCO,COHU,CPA,CXW,EFX,EQIX,EQC,FR,FOSL,FCPT,FTSI,HR,HUBS,IFF,KGC,LPI,MFC,MRO,MGM,NTAP,NWE,NUS,PGRE,PEGA,PRSP,PS,QLYS,QDEL,QUOT,RDFN,REG,SSNC,STAG,SLF,SPWR,TCO,TTGT,TRMB,TRIP,TCX,TYL,WCN,WELL,AER,AGIO,BABA,ALKS,ALE,AIMC,AIG,BPMC,BWA,BAM,GTLS,CBB,DAN,DLPH,DUK,EEX,DAVA,FIS,FAF,FTS,GNRC,HE,HIMX,HII,HUN,INCY,IPGP,IRM,IRWD,KELYA,KHC,LH,LECO,MTRN,NMRK,NICE,NVMI,PATK,PBF,PBFX,PEP,POOL,PDS,R,SSTK,SITC,SON,TRP,TPX,THS,TUFN,WM,WSO,WST,WEX,WH,YETI,ZBRA,ZTS&ta=0&o=-volume
    • Afternoon: AEM AYX AMN ARI ANET BIO BKI BL BFAM CARG CC CGNX CXP CRY DDOG DXCM DLR EXPE FNF GDDY HTA LPSN MAT MERC MHK MRC NVDA PDFS RSG ROKU SWAV SPSC SPXC SVMK TLND TEX TNET TRUP RARE VECO WRE AUY YELP

    Friday (Feb 14) 
    • Morning: AXL ABR AZN CGC ENB ESNT MGP NWL POR PPL SXT TRTN YNDX
    • Afternoon: AL

    Notable earnings reports:
    Restaurant Brands (NYSE:QSR) on February 10; Lyft (NASDAQ:LYFT), Hasbro (NASDAQ:HAS), Hilton (NYSE:HLT), Under Armour (UAA), and Western Union (NYSE:WU) on February 11; Cisco (NASDAQ:CSCO), CVS Health (NYSE:CVS), Shopify (NYSE:SHOP), Teva Pharmaceuticals (NYSE:TEVA) and TripAdvisor (NASDAQ:TRIP) on February 12; Alibaba, Nvidia, PepsiCo, Roku (NASDAQ:ROKU), AIG (NYSE:AIG) and Yelp (NYSE:YELP) on February 13; AstraZeneca (NYSE:AZN) on February 14.

    Thursday, October 31, 2019

    -=Kraft Heinz (KHC) reported earnings on Thur 31 Oct 19 (b/o)


    • Oct. 30: #2, 8, 10, 12, 23, 29, 30, 75, 83, 97



    Kraft Heinz beats by $0.15, reports revs in-line
  • Reports Q3 (Sep) earnings of $0.69 per share, excluding non-recurring items, $0.15 better than the S&P Capital IQ Consensus of $0.54; revenues fell 4.8% year/year to $6.08 bln vs the $6.13 bln S&P Capital IQ Consensus.
    • US sales declined 1.6% to $4.4 bln. Pricing increased 1.5 percentage points, driven by price increases across several categories, including Oscar Mayer cold cuts, Philadelphia cream cheese, macaroni & cheese, and Lunchables. This more than offset pricing to offset lower key commodity costs in coffee and nuts.
  • "While our third-quarter results remain below our potential, we showed sequential improvement versus the first half, and [we] believe we are beginning to operate the business better...We are making good progress in identifying and addressing the root causes of past performance, as well as setting our strategic direction. Although there is still much work ahead, we're encouraged by our improving performance, and are even more confident in our ability to turn around the Company and set a path of long term growth and profitability."

  • Thursday, August 8, 2019

    -=Kraft Heinz (KHC) reported earnings on Thur 8 Aug 2019 (b/o)

    The Chicago-based company earned $1.44 per share, compared with $1.89 a year earlier. Kraft Heinz said net sales fell about 5% to $12.37 billion.
    • Forward Dividend & Yield
    1.60 (4.92%)



    Kraft Heinz reports 1H19 results, CEO says level of decline experienced in the first half of this year "is nothing we should find acceptable moving forward"; Co sees brief delay in filing Q2 

  • Q1:
    • Reports Q1 earnings of $0.66 per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $0.61; revenues fell 5.5% year/year to $5.96 bln vs the $6.07 bln S&P Capital IQ Consensus.
  • Q2:
    • Reports Q2 earnings of $0.78 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $0.75; revenues fell 4.2% year/year to $6.41 bln vs the $6.59 bln S&P Capital IQ Consensus.
  • In connection with the preparation of the first and second quarter financial statements, which occurred concurrently due to the delayed filing of the 2018 Form 10-K, the Company concluded that the fair values of certain goodwill and intangible assets were below their carrying amounts. As a result, the Company recorded non-cash impairment charges to lower the carrying amount of goodwill in certain reporting units (EMEA East, Brazil, United States Refrigerated, and Latin America Exports) by approximately $744 million, primarily based on new five-year operating forecasts for several international businesses that establish revised expectations and priorities for the coming years in response to current market factors. In addition, the Company recorded non-cash impairment charges(3) of approximately $474 million to lower the carrying amount of certain intangible assets, primarily driven by the application of a higher discount rate to reflect the markets' perceived risk in the Company's valuation.
  • "The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward," said Kraft Heinz CEO Miguel Patricio. "We have significant work ahead of us to set our strategic priorities and change the trajectory of our business. But in my short time with the company, I have developed a strong appreciation for the affinity consumers around the world continue to have for our brands, the talent and determination of our employees, as well as the commitment of our customers. We have a lot to work with and build upon, and our team is motivated by the opportunity to drive the next phase of growth and profitability for Kraft Heinz and our shareholders."
  • The Company is also filing a Form 12b-25 with the SEC today, disclosing that while the Company is unable to file its Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2019 (the "Q2 Form 10-Q") by the prescribed due date, the Company expects to file the Q2 Form 10-Q on or before the fifth calendar day following the prescribed due date.
  • Co separately affirmed its regular quarterly dividend of $0.40 per share of common stock
  • Thursday, February 21, 2019

    =Kraft Heinz (KHC) reported earnings on Thur 21 Feb 2019 (a/h)



    Kraft Heinz misses by $0.10, reports revs in-line; discloses receipt of SEC subpoena 
    • Reports Q4 (Dec) earnings of $0.84 per share, excluding non-recurring items, $0.10 worse than the S&P Capital IQ Consensus of $0.94; revenues rose 0.7% year/year to $6.89 bln vs the $6.93 bln S&P Capital IQ Consensus.
      • Organic Net Sales increased 2.4 percent versus the year-ago period. Pricing was down 1.6 percentage points, as increased promotional activity and pricing to reflect lower key commodity(2) costs in North America, particularly the United States, more than offset higher pricing in EMEA and Rest of World markets. Volume/mix increased 4.0 percentage points, driven by a combination of strong consumption gains in North America and condiments and sauces growth across Latin America, North America, and EMEA.
    • Adjusted EBITDA decreased 13.9 percent versus the year-ago period to $1.7 billion (vs. $1.91 bln analyst estimate), including a negative 2.4 percentage point impact from currency.
    • The Company received a subpoena in October 2018 from the U.S. Securities and Exchange Commission associated with an investigation into the Company's procurement area, more specifically the Company's accounting policies, procedures, and internal controls related to its procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to its agreements with its vendors.
      • Following this initial SEC document request, the Company together with external counsel launched an investigation into the procurement area. In the fourth quarter of 2018, as a result of findings from the investigation, the Company recorded a $25 million increase to costs of products sold as an out of period correction as the Company determined the amounts were immaterial to the fourth quarter of 2018 and its previously reported 2018 and 2017 interim and year to date periods. Additionally, the Company is in the process of implementing certain improvements to its internal controls to mitigate the likelihood of this occurring in the future and has taken other remedial measures. The Company continues to cooperate fully with the U.S. Securities and Exchange Commission.
      • At this time, the Company does not expect the matters subject to the investigation to be material to its current period or any prior period financial statements.
    Kraft Heinz will also cut its quarterly dividend to $0.40/share from $0.625/share
    The reduction was announced in the company's Q4 and Full Year 2018 Update slide presentation.

    Kraft Heinz to report Q4 results after the close
    • Kraft Heinz is slated to report its Q4 results after the close, with a conference call scheduled for 5 PM ET.
    • Current analyst estimates call for EPS of $0.94 on revenues of $6.93 bln (+0.8% y/y).
    • While Kraft does not traditionally provide specific forward-looking guidance, its worth noting that analysts expect the company to deliver EPS of $3.67 on revenues of $26.42 bln (+0.5% y/y) in 2019.
    • When reporting Q3 results in early November, Kraft provided some broader outlook comments, including:
      • Expect both EBITDA growth and absolute level of EBITDA margin to improve beginning in Q4
      • Expect to sustain organic top line momentum -- one-off factors that dragged Q3 EBITDA down should fall away
      • Expect to see a better y/y balance between cost inflation and savings
      • Expects heavy year of investments to drive sustainable profitable growth into 2019 and beyond
    • Kraft currently has a market cap of $59 bln and trades at a P/E of 13.3 & P/S of 2.2. Shares are up 12% YTD, but down nearly 51% from all-time highs set in early 2017.
    • Based on the Mar 47.5 straddle, the options market is pricing in a move of approximately 6% in either direction by March expiration (March 15).

    Monday, February 18, 2019

    Earnings this week : Feb. 18 - 22, 2019 (wk 8)

    Earnings confirmed to report this week:

    Monday (Feb 18) 
    • (Holiday) U.S. Market Closed

    Tuesday (Feb 19)
    • Morning: AAP ALLE WTR AAWW CLR CTB CEQP ECL FELE FDP GDI GPC HLX HIMX HEP HOLI JELD LDOS DOOR MDT NEO NBL SAGE SCI SITE TTS TSEM RIG USAC WMT
    • Afternoon: ACC AWK CDNS CRMT CXW DVN  FIVN HLF HST HSTM HVT INST KAR KRG LC LMAT LNTH LZB NTB NVTA RARE SSTI TILE TVTY TXRH VRSK WIRE

    Wednesday (Feb 20)
    • Morning: ADI AROC BHC BDC CNDT CVS ETR FMS GCI GRMN GEL GVA HSIC HFC IPHS I LAMR NI OMI OC QUAD SAH SO TRGP VNTR VPG WIX WWW
    • Afternoon: A ALB ATR AXTI CAI CAKE CAR  CBLK CDE CECO CHE CLI CONE CUTR CYH FLS FTI GDDY GDOT GHDX IAG ICLR INOV IVR JACK KALU LASR LOPE MANT MMI NDSN NE NTES NUVA O OR PAAS PEGA PI QEP RGR ROG RPT SAM SEDG TMST TRN TSLX TYL UFPI VIPS VMI WK WPG WPX WRI XEC Y

    Thursday (Feb 21)
    • Morning:  BRC DIN DLPH DPZ FND GIL GOGO HL HRL ITGR NCLH NEM PLAB PWR RGEN ROCK RS SFM SGMs STOR TFX VG WEN
    • Afternoon:  AAOI ACIA ADSW AL AMH ANIK APPN ATUS BEAT BIDU BJRI BMRN BOOM BYD CASA CATM CBPX CENX CHSP COLD CUBE CWST CZR DBX DXCM EBS ECOL ED EGO  ENV EVRG EXAS FIX FLR FSLR GMED HALO HCC HPE HTGC INFN INT INTU IQ KEYS KHC LNT LPSN MATX MDRX NCMI NVRO OLED PAGS PBA PE PRA RMAX ROKU SBAC SEM SSRM STMP SWM TGH TTD TXMD UCTT VERI VLRS XOG

    Friday (Feb 22)
    • Morning: AN ASIX B CNK COG COT ERF ETM HMSY ITT MGA MNTA PNW RCM RUTH RY TDS TVPT USM W WPC

    Thursday, November 1, 2018

    =Kraft Heinz (KHC) reported earnings on Thur 1 Nov 2018 (a/h)



    Kraft Heinz misses by $0.03, beats on revs

  • Reports Q3 (Sep) earnings of $0.78 per share, excluding non-recurring items, $0.03 worse than the S&P Capital IQ Consensus of $0.81; revenues rose 1.6% year/year to $6.38 bln vs the $6.31 bln S&P Capital IQ Consensus.
    • Organic Net Sales increased 2.6 percent versus the year-ago period. Pricing was down 0.9 percentage points, driven by increased promotional support and key commodity-related pricing actions in the United States that more than offset increased pricing in Rest of World markets, primarily from highly inflationary environments. Volume/mix increased 3.5 percentage points, with growth in every segment and led by consumption growth in a majority of categories in the United States.
  • "We believe that our Q3 results are strong evidence that our commercial investments are working, with solid top line performance in the quarter," said Kraft Heinz CEO Bernardo Hees. "This reflects our strong pipeline of marketing, new product and whitespace initiatives now in the marketplace, backed by investments in capabilities we have been making for brand and category advantage. While a number of one-off factors - as well as our desire to insure customer service - held back profit in the quarter, we remain confident that we are well-positioned to deliver sustainable, profitable growth going forward."
  • Friday, February 16, 2018

    =Kraft Heinz (KHC) reported earnings on Fri 16 Feb 2018 (b/o)



    Kraft Heinz misses by $0.05, reports revs in-line 
    • Reports Q4 (Dec) earnings of $0.90 per share, excluding non-recurring items, $0.05 worse thanthe Capital IQ Consensus of $0.95; revenues rose 0.3% year/year to $6.88 bln vs the $6.91 bln Capital IQ Consensus, including a 0.9 percentage point benefit from currency.
    • Organic Net Sales decreased 0.6 percent versus the year-ago period. Pricing increased 1.0 percentage points, driven by price increases in Rest of World markets and the United States. Volume/mix decreased 1.6 percentage points, primarily due to lower shipments across several categories, particularly nuts, natural cheese and cold cuts in the United States as well as cheese and coffee in Canada. This was partially offset by ongoing growth in macaroni and cheese in the United States as well as strong growth from condiments and sauces in Europe, China and Indonesia. Adjusted EBITDA increased 4.0% to $2.0 billion, including a favorable 0.8 percentage point impact from currency. Excluding the impact of currency, Adjusted EBITDA increased primarily due to gains from cost savings initiatives, lower overhead costs and favorable pricing, which was partially offset by higher input costs and lower volume/mix.
    • "There's no question that our financial performance in 2017 did not reflect our progress or potential," said Kraft Heinz CEO Bernardo Hees. "We made significant improvements in many of our businesses, and were able to accelerate some important business investments at the end of the year. This, together with benefits from the U.S. Tax Cuts and Jobs Act and additional investments in our capabilities, should help further advantage our brands and grow our business in 2018 and beyond."
      "Since the HR-1 Tax Cuts and Jobs Act was signed into law, we have already taken actions and are accelerating key business initiatives," said Kraft Heinz CFO David Knopf. "This includes approximately $300 million in strategic investments to build our capabilities, our people skills and our brands; more than $800 million in capital expenditures to improve quality, safety and capacity; as well as $1.3 billion to pre-fund our post-retirement benefit plans."

    Wednesday, May 3, 2017

    =Kraft Heinz (KHC) reported earnings on Wed 3 May 2017 (a/h)



    Kraft Heinz misses by $0.02, misses on revs :
    • Reports Q1 (Mar) earnings of $0.84 per share, $0.02 worse than the Capital IQ Consensus of $0.86; revenues fell 3.1% year/year to $6.36 bln vs the $6.44 bln Capital IQ Consensus.
    • Organic Net Sales decreased 2.7 percent versus the year-ago period. Pricing increased 1.0 percentage points as price increases in Rest of World markets, primarily Latin America, as well as the United States more than offset an unfavorable impact from promotional timing versus the prior-year period, particularly in Canada and Europe. Volume/mix decreased 3.7 percentage points as declines in North America more than offset growth in Rest of World markets and Europe.
      • United States net sales were $4.6 billion, down 3.5 percent versus the year-ago period. Pricing increased 0.7 percentage points primarily due to price increases in cheese. Volume/mix decreased 4.2 percentage points from a combination of consumption weakness across categories, primarily driven by calendar shifts, as well as select distribution losses in the club channel. The categories most affected by these factors were foodservice, cheese, meats and nuts. These declines were partially offset by continued growth from Lunchables, and innovation-led growth in frozen meals and macaroni and cheese.
    • "Although our top line results in the first quarter reflect a slow start to the year, we remain on track with our key initiatives," said Kraft Heinz CEO Bernardo Hees. "We are delivering product innovations, renovations and geographic expansion that positions Kraft Heinz to drive organic sales growth for the balance of 2017 and beyond. We also have good visibility on costs, savings and what we must do to deliver another year of profitable growth for The Kraft Heinz Company."

    Friday, February 17, 2017

    =Unilever (UL) rejects $143 billion Kraft Heinz Company (KHC) offer as bid too low

    Update Sun 2/19/17: 
    (Bloomberg)—Kraft Heinz withdrew its $143 billion bid for Unilever two days after the approach became public amid stiff opposition from the Anglo-Dutch target to engage in discussions.
    ***
    • Would be 3rd biggest deal, largest ever in consumer staples sector, largest ever cross border deal.
    • The proposed deal, which would be the largest-ever takeover in the food or beverage industry, would create a company with combined sales of $84.8 billion last year, second only to Nestle.





    LONDON (Reuters) - Unilever (UL) said it saw no merit in a proposed merger with U.S. food group Kraft Heinz Co (KHC) after rejecting a $143 billion offer, saying it "fundamentally undervalues" the Anglo-Dutch consumer goods giant.
    Unilever said it had received an offer of $50 per share, made up of $30.23 in cash and the remainder in stock in the new group, representing a premium of 18 percent.
    "This fundamentally undervalues Unilever," it said on Friday. "Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever's shareholders. Unilever does not see the basis for any further discussions."
    The Kraft Heinz Company (KHC) notes the recent speculation regarding a possible combination of Kraft and Unilever plc / Unilever NA.
    • Kraft confirms that it has made a comprehensive proposal to Unilever about combining the two groups to create a leading consumer goods company with a mission of long-term growth and sustainable living.
    • While Unilever has declined the proposal, the co states it looks forward to working to reach agreement on the terms of a transaction.

    Wednesday, February 15, 2017

    =Kraft Heinz (KHC) reported earnings on Wed 15 Feb 2017 (a/h)




    Kraft Heinz beats by $0.04, beats on revs :
    • Reports Q4 (Dec) earnings of $0.91 per share, $0.04 better than the Capital IQ Consensus of $0.87; revenues fell 3.7% year/year to $6.86 bln vs the $6.76 bln Capital IQ Consensus.
    • Organic Net Sales increased 1.6 percent versus the year-ago period. Pricing decreased 0.1 percentage points as price increases to offset input cost inflation in Rest of World markets, primarily in Latin America, as well as gains in the United States were more than offset by the timing of promotional activities versus the prior year in Canada. Volume/mix increased 1.7 percentage points with positive contributions from all business segments.
    • "Looking forward, our objectives and opportunities are clear. But we need to sharpen our focus on profitable sales, and further improve our capabilities and execution to deliver another year of strong, sustainable growth in 2017."
    • The Company now expects its multi-year Integration Program to deliver $1.7 billion in cumulative, pre-tax savings by the end of 2017, up from $1.5 billion previously. The program is now forecast to result in $2.0 billion of pre-tax costs, up from $1.9 billion previously, and $1.3 billion of capital expenditures, up from $1.1 billion previously.

    Wednesday, December 14, 2016

    ==Mondelez (MDLZ) to be acquired by Kraft Heinz (KHC) ?

    (Bloomberg)—Mondelez International jumped in extended trading on a report that the global snack giant may be acquired by Kraft Heinz, the food company backed by Warren Buffett's Berkshire Hathaway and Jorge Paulo Lemann's 3G Capital.

    Mondelez surged 9.7 percent to $47 at 4:27 p.m. in New York. Kraft Heinz advanced 1.9 percent. The Swiss economic magazine Bilanz reported on the possible takeover, citing a person it didn't identify.

    Berkshire and 3G have been expanding in the food industry, taking ketchup maker H.J. Heinz private in 2013 and then merging it with Kraft Foods Group last year. The combined company has gained in market value as 3G slashed costs by cutting jobs and shutting factories. Mondelez, the maker of Oreo cookies, was previously part of Kraft, and the companies split in 2012.





    ** Update 15 Dec 2016 **
    (Bloomberg) — Kraft Heinz Co. is not currently in talks to acquire Mondelez International Inc., according to people familiar with the matter.

    An earlier report that the U.S. snack maker could be a target for the company sent shares higher. The report came from the magazine Bilanz, which cited a person it didn’t identify.

    Mondelez rose 4.7 percent at 4:57 p.m. Chicago time yesterday while Kraft Heinz advanced 2.6 percent after Bilanz magazine reported that Kraft Heinz, backed by Warren Buffett’s Berkshire Hathaway Inc. and Jorge Paulo Lemann’s 3G Capital, is planning a takeover, citing an unidentified source.

    A spokesman for Mondelez declined to comment. Representatives for Kraft Heinz didn’t immediately respond to a request for comment.

    Berkshire and 3G have been expanding in the food industry. They took ketchup maker H.J. Heinz private in 2013 and then merged it with Kraft Foods Group Inc. last year. The combined company has gained in market value as 3G slashed costs by cutting jobs and shutting factories. Mondelez, the maker of Oreo cookies, was previously part of Kraft, and the companies split in 2012.