| Product Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Condiments and Sauces ($ million) | N/A | **2,169**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **2,390**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **2,171**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | N/A | N/A | N/A |
| Cheese and Dairy ($ million) | N/A | **917**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **883**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **909**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | **413**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **426**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Ambient Foods ($ million) | N/A | **749**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **689**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **759**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | N/A | N/A | N/A |
| Frozen and Chilled Foods ($ million) | N/A | **719**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **709**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **757**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | N/A | N/A | N/A |
| Meats and Seafood ($ million) | N/A | **595**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **644**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **626**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | **511**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **538**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Refreshment Beverages ($ million) | N/A | **489**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **568**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **485**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | N/A | N/A | N/A |
| Coffee ($ million) | N/A | **220**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **212**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **220**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | **221**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **200**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Infant and Nutrition ($ million) | N/A | **93**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **96**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **85**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | N/A | N/A | N/A |
| Desserts, Toppings, and Baking ($ million) | N/A | **259**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **296**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **299**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | **241**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **292**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Other ($ million) | N/A | **279**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **234**  **[0001637459-23-000114_khc-20230701.htm:38]**  | **259**  **[0001637459-23-000143_khc-20230930.htm:39]**  | N/A | **129**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **75**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Taste Elevation ($ million) | N/A | N/A | N/A | N/A | N/A | **2,803**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **2,825**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Easy Ready Meals ($ million) | N/A | N/A | N/A | N/A | N/A | **1,116**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **1,171**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Substantial Snacking ($ million) | N/A | N/A | N/A | N/A | N/A | **443**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **317**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Total Accelerate ($ million) | N/A | N/A | N/A | N/A | N/A | **4,362**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **4,313**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Total Protect ($ million) | N/A | N/A | N/A | N/A | N/A | **775**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **831**  **[0001637459-24-000144_khc-20240928.htm:41]**  |
| Total Balance ($ million) | N/A | N/A | N/A | N/A | N/A | **1,274**  **[0001637459-24-000069_khc-20240330.htm:28]**  | N/A | **1,239**  **[0001637459-24-000144_khc-20240928.htm:41]**  |

283f60c0afc42124d6d8c28f2faf3e71596c405e25a1defa5c87f704cf452038

760468296e5a6ad24b799802fe631d21ab55d953d295d9fa59537e7573da2a7e

Kraft Heinz Company (KHC) is a global manufacturer and marketer of food and beverage products, offering a diverse range of items to meet various consumer needs **[0001637459-24-000069_khc-20240330.htm:31]**. The company sells condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee, and other grocery products **[0001637459-24-000018_khc-20231230.htm:8]**. Kraft Heinz manages its sales portfolio through six consumer-driven product platforms, each designed to cater to specific consumer preferences and adaptable by segment and market **[0001637459-24-000018_khc-20231230.htm:8]**.

1. **Taste Elevation** - Focuses on condiments and sauces, enhancing the flavor of meals and accounting for a significant portion of the company's sales.
2. **Cheese and Dairy** - Offers a variety of cheese and dairy products, catering to consumers seeking quality and taste in their dairy choices.
3. **Ambient Foods** - Provides shelf-stable food products that are convenient and easy to store, meeting the needs of busy consumers.
4. **Frozen and Chilled Foods** - Delivers a range of frozen and chilled meal options, ensuring freshness and convenience for quick meal solutions.
5. **Fast Fresh Meals** - Offers ready-to-eat meals that are both quick to prepare and fresh, appealing to consumers with busy lifestyles.
6. **Easy Meals Made Better** - Enhances traditional meal options with improved recipes and ingredients, providing better meal experiences.
7. **Real Food Snacking** - Provides snack options made with real ingredients, catering to health-conscious consumers seeking nutritious snacks.
8. **Flavorful Hydration** - Offers a variety of refreshment beverages, focusing on taste and hydration for consumers.
9. **Easy Indulgent Desserts** - Delivers dessert options that are easy to prepare and indulgent, satisfying consumers' sweet cravings.

77d9a0f1f74543e3ad93e79aa19c59372bbb8c0dfa4efe78e49376b52b2b9737

| Metric [Unit: $ Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America            | **4,885**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **5,079**  **[0001637459-23-000114_khc-20230701.htm:37]**  | **4,995**  **[0001637459-23-000141_ex991-erq32023.htm:0]** **[0001637459-23-000143_khc-20230930.htm:38]**  | N/A     | **4,828**  **[0001637459-24-000066_ex991-erq12024.htm:0]**  | **4,921**  **[0001637459-24-000125_ex991-erq22024.htm:1]**  | **4,826**  **[0001637459-24-000144_khc-20240928.htm:49]**  | N/A     |
| International            | **1,604**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **1,642**  **[0001637459-23-000114_khc-20230701.htm:37]**  | **1,575**  **[0001637459-23-000141_ex991-erq32023.htm:0]** **[0001637459-23-000143_khc-20230930.htm:38]**  | N/A     | **1,583**  **[0001637459-24-000066_ex991-erq12024.htm:0]**  | **1,555**  **[0001637459-24-000125_ex991-erq22024.htm:1]**  | **1,557**  **[0001637459-24-000144_khc-20240928.htm:49]**  | N/A     |
| Total Net Sales          | **6,489**  **[0001637459-23-000047_khc-20230401.htm:30]**  | **6,721**  **[0001637459-23-000114_khc-20230701.htm:37]**  | **6,570**  **[0001637459-23-000141_ex991-erq32023.htm:0]** **[0001637459-23-000143_khc-20230930.htm:38]**  | N/A     | **6,411**  **[0001637459-24-000066_ex991-erq12024.htm:0]**  | **6,476**  **[0001637459-24-000125_ex991-erq22024.htm:1]**  | **6,383**  **[0001637459-24-000144_khc-20240928.htm:49]**  | N/A     |

b65e98229220d14871410d8369541596bbcfaa6ba3740861737f0c8fc45ebcee

1. Given your plan to invest in trade promotions selectively to drive better volume results for a more value-seeking consumer, how do you anticipate this will impact your gross margins, especially considering that approximately 30% to 40% of your U.S. portfolio requires incremental investment to close price gaps?  **[KHC_3395268_2]** 

2. You mentioned that you do not need volume to turn positive to achieve your guidance, yet you expect revenue and volume to gradually improve throughout the quarters; can you elaborate on the specific drivers of this expected improvement and the risks associated with relying on price increases in a challenging consumer environment?  **[KHC_3395268_8]** 

3. Despite onetime issues negatively impacting gross margin in Q1 and Q2, you achieved gross margin expansion; can you quantify the impact of these onetime issues and discuss how sustainable your gross margin improvements are in light of potential future pricing and volume pressures?  **[KHC_3395268_10]** 

4. In international markets like the UK, China, and Brazil, you've faced challenges such as increased private label competition, soft industry conditions, and customer inventory adjustments; what specific strategies are you implementing to mitigate these issues, and how do you expect these markets to perform in the back half of the year?  **[KHC_3395268_5]** 

5. Given that you're not always the highest-priced product in your categories and consumers are increasingly value-seeking, how confident are you in your ability to compete on non-price factors through innovation and marketing efforts, and what measurable progress have you seen in redefining your portfolio to better compete beyond pricing?  **[KHC_3395268_6]** 

3cc2573f835ce8623409f154dc05a60a2372b05ee2f8e2dafc29fbc4661bdd41

Adjustments for Non-Cash Items (USD, Millions)

Stock-Based Compensation (USD, Millions)

Changes in Working Capital (USD, Millions)

Capital Expenditures (USD, Millions)

Proceeds from Debt (USD, Millions)

Repayments of Debt (USD, Millions)

Share Repurchases (USD, Millions)

Dividend Payments (USD, Millions)

Net Change in Cash (USD, Millions)

5695e8a313e3d055e114dea83cf7fbb61a86ecfa8879a56487d9df8d9098b4db

North America

- United States

- Canada

International

- International Developed Markets

- Emerging Markets

- United Kingdom

- Other

EMEA

Rest of World

- Europe

- Asia/Pacific

- Latin America

- RIMEA

Total Revenue

4cc76e875de8ae80a402f3c8a7e152c5af8b68c48616bc4cc6e3f3a8e22fcea8

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

f3d80d53deed11def7b9f77b593922f71eee3c7ce1dd2c5315a08ae6c22dd274

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not provide specific guidance from the Q3 2024 earnings call for Kraft Heinz.

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Net Sales**: Lowered from flat to 2% growth to a range of down 2% to flat  **[KHC_3395530_6]** .
  2. **Adjusted Operating Income Growth**: Expected to be in the range of 1% to 3%  **[KHC_3395530_6]** .
  3. **Adjusted Gross Profit Margin**: Expected year-over-year expansion increased to a range of 75 to 125 basis points  **[KHC_3395530_6]** .
  4. **Adjusted EPS Growth**: Reiterated at 1% to 3%  **[KHC_3395530_6]** .
  5. **Share Repurchase Program**: No additional share repurchases expected in the second half of the year  **[KHC_3395530_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Net Sales Growth**: Expected to be between 0% to 2%  **[KHC_3384652_6]** .
  2. **Adjusted Operating Income Growth**: Expected to be between 2% to 4%  **[KHC_3384652_6]** .
  3. **Adjusted EPS Growth**: Expected to be between 1% to 3%  **[KHC_3384652_6]** .
  4. **Adjusted Gross Profit Margin Expansion**: Expected to expand by 50 to 100 basis points  **[KHC_3384652_6]** .
  5. **Global Away-From-Home Organic Net Sales Growth**: Expected low to mid-single-digit growth  **[KHC_3384652_1]** .
  6. **Emerging Markets Organic Net Sales Growth**: Expected double-digit growth  **[KHC_3384652_1]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Net Sales Growth**: Expected to be between 0% to 2%  **[KHC_3384653_8]** .
  2. **Adjusted Operating Income Growth**: Expected to grow 2% to 4%  **[KHC_3384653_8]** .
  3. **Adjusted Gross Profit Margin**: Expected to expand by 25 to 75 basis points  **[KHC_3384653_8]** .
  4. **SG&A Investments**: Planned increase, but less than in 2023  **[KHC_3384653_8]** .
  5. **Adjusted EPS Growth**: Expected to grow 1% to 3%  **[KHC_3384653_8]** .
  6. **Effective Tax Rate on Adjusted EPS**: Expected to be 20% to 22%  **[KHC_3384653_8]** .
  7. **Interest and Other Expense Income**: Expected $45 million headwind  **[KHC_3384653_8]** .
  8. **Inflation**: Expected around 3%  **[KHC_3373240_12]** .
  9. **Pricing**: Expected at approximately 1%  **[KHC_3373240_9]** .
  10. **Efficiencies**: Expected to deliver efficiencies ahead of the 3% COGS target  **[KHC_3373240_13]** .

1ea8971cc2ca02980d3264c3e0113f1fad0d2d7c691501d476b6fadd1b21241f

b03d922235a474ca4974eab8df05947c3593341331d4a426c89887f1a6d0389b

**Annual guidance for FY 2024:**
- **Adjusted Gross Profit Margin Expansion**: at the lower end of 75 to 125 basis points  **[KHC_3404903_7]**  (lowered from 75 to 125 basis points  **[KHC_3395530_6]** )  
- **Adjusted Operating Income Growth**: at the low end of 1% to 3%  **[KHC_3404903_7]**  (lowered from 1% to 3%  **[KHC_3395530_6]** )  
- **Adjusted EPS Growth**: at the low end of 1% to 3%  **[KHC_3404903_7]**  (lowered from 1% to 3%  **[KHC_3395530_6]** )  
- **Full-Year Inflation**: 4%  **[KHC_3404903_7]**  (no prior guidance)  
- **Interest and Other Expense Income**: relatively flat  **[KHC_3404903_7]**  (no prior guidance)  
- **Share Repurchases**: not reflected in guidance  **[KHC_3404903_7]**  (no change from prior guidance  **[KHC_3395530_6]** )  

769e74a88c752f805156a4a51fc4216ae24ca86d4d16b7cdd862a136d99aec35

| Name                | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|---------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Carlos Abrams-Rivera| Chief Executive Officer and Director                                     | December 31, 2023| Carlos Abrams-Rivera is the CEO and Director of Kraft Heinz. He served as President from August to December 2023 and as EVP and President, North America from December 2021 to August 2023  **[0001637459-24-000018_khc-20231230.htm:13]** **[0001308179-24-000234_lkhc2024_def14a.htm:8]** .          |
| Andre Maciel        | Executive Vice President and Global Chief Financial Officer              | March 2022       | Andre Maciel has been the EVP and Global CFO since March 2022. He was previously the SVP, U.S. CFO, and Head of Digital Transformation from September 2019 to March 2022  **[0001637459-24-000018_khc-20231230.htm:13]** **[0001637459-23-000009_khc-20221231.htm:12]** .                           |
| Diana Frost         | Global Chief Growth Officer                                              | December 2023    | Diana Frost has been the Global Chief Growth Officer since December 2023. She was the Chief Growth Officer for North America from August to December 2023  **[0001637459-24-000018_khc-20231230.htm:13]** .                                            |
| Rashida La Lande    | Executive Vice President and Chief Legal and Corporate Affairs Officer   | December 31, 2023| Rashida La Lande served as EVP and Chief Legal and Corporate Affairs Officer from December 31, 2023, stepping down on August 5, 2024, but remained as an advisor  **[0001637459-24-000144_exhibit101separationagreem.htm:1]** **[0001637459-24-000131_khc-20240731.htm:1]** .                                  |
| Marcos Eloi Lima    | Executive Vice President and Global Chief Procurement and Sustainability Officer | December 2023    | Marcos Eloi Lima is the EVP and Global Chief Procurement and Sustainability Officer since December 2023. He was EVP and Global Chief Procurement Officer from December 2021 to December 2023  **[0001637459-24-000018_khc-20231230.htm:13]** .          |
| Pedro Navio         | Executive Vice President and President, North America                    | December 2023    | Pedro Navio has been EVP and President, North America since December 2023. He was President of Taste, Meals, and Away From Home from March 2022 to December 2023  **[0001637459-24-000018_khc-20231230.htm:13]** .                                      |
| Cory Onell          | Executive Vice President and Chief Omnichannel Sales and Asian Emerging Markets Officer | December 2023    | Cory Onell is the EVP and Chief Omnichannel Sales and Asian Emerging Markets Officer since December 2023. He was the Chief Sales Officer, U.S., from August 2020 to December 2023  **[0001637459-24-000018_khc-20231230.htm:13]** .                     |
| Flávio Barros Torres| Executive Vice President and Global Chief Supply Chain Officer           | December 2021    | Flávio Barros Torres has been the EVP and Global Chief Supply Chain Officer since December 2021. He was the Head of Global Operations from January 2020 to December 2021  **[0001637459-24-000018_khc-20231230.htm:13]** **[0001637459-23-000009_khc-20221231.htm:12]** .                           |
| Melissa Werneck     | Executive Vice President and Global Chief People Officer                 | December 2021    | Melissa Werneck has been the EVP and Global Chief People Officer since December 2021. She was the Global Chief People Officer from 2016 to December 2021  **[0001637459-24-000018_khc-20231230.htm:13]** **[0001637459-23-000009_khc-20221231.htm:12]** .                                          |
| Debby Soo           | Board Member                                                             | October 24, 2024 | Debby Soo was appointed as a Board Member effective October 24, 2024. She is the CEO of OpenTable, Inc., and has significant expertise in technology transformation and global business management  **[0001637459-24-000135_ex991-2024x10x28.htm:0]** **[0001637459-24-000135_khc-20241024.htm:1]** . |
| Vince Garlati       | Vice President, Global Controller, and Principal Accounting Officer      | November 15, 2024| Vince Garlati resumed his role as Principal Accounting Officer on November 15, 2024, after a leave of absence. He has been the Global Controller since June 2018  **[0001637459-24-000150_khc-20241115.htm:1]** .                                      |
| Chris Asher         | Deputy Global Controller                                                 | March 7, 2024    | Chris Asher serves as the Deputy Global Controller. He was acting as the Principal Accounting Officer during Vince Garlati's leave of absence  **[0001637459-24-000057_xslF345X02/wk-form3_1710533232.xml:0]** .                                                         |

955d3be53c24140fc81b7c2ec4f1bf652444572c156c44a2455677e8c2816d85

| Program Details          | Program 1            |
|--------------------------|----------------------|
| Approval Date            | November 27, 2023  **[0001637459-24-000144_khc-20240928.htm:56]** **[0001637459-24-000144_khc-20240928.htm:73]**  |
| End Date/Duration        | December 26, 2026  **[0001637459-24-000144_khc-20240928.htm:56]** **[0001637459-24-000144_khc-20240928.htm:73]**  |
| Total additional amount  | $3.0 billion  **[0001637459-24-000144_khc-20240928.htm:56]** **[0001637459-24-000144_khc-20240928.htm:73]**   |
| Remaining authorization  | Approximately $2.4 billion as of September 28, 2024  **[0001637459-24-000144_khc-20240928.htm:56]** **[0001637459-24-000144_khc-20240928.htm:73]**  |
| Details                  | The program aims to enhance long-term stockholder value. It allows repurchases through various means and can be modified, suspended, or discontinued at any time.  **[0001637459-24-000018_khc-20231230.htm:158]** **[0001637459-24-000018_khc-20231230.htm:34]** **[0001637459-24-000144_khc-20240928.htm:56]** **[0001637459-24-000018_khc-20231230.htm:50]** **[0001637459-24-000129_khc-20240629.htm:69]** **[0001637459-24-000069_khc-20240330.htm:52]** **[0001637459-24-000129_khc-20240629.htm:53]** **[0001637459-24-000069_khc-20240330.htm:41]**  |

19726c7cccda6ce202913a5d816b4bbf1e6e6f921a107cee455513b76bae5b80

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1979  **[0001637459-24-000018_khc-20231230.htm:85]**    | Present  | Current auditor   |

e5b042089f5ef54401a8466040a9ad64a17bfa1c4ba07597c7fb28c3295278f2

71f5652470cdbefd8d05a963272caad64ce69576479231d501017b4ce4abcaba

- Total Revenue: $6,383 million (-3% YoY)  **[0001637459-23-000143_khc-20230930.htm:48]** **[0001637459-23-000143_khc-20230930.htm:38]** **[0001637459-24-000144_khc-20240928.htm:39]**   
- Taste Elevation Segment: $2,825 million (+29% YoY)  **[0001637459-23-000143_khc-20230930.htm:38]** **[0001637459-24-000144_khc-20240928.htm:49]** **[0001637459-24-000144_khc-20240928.htm:41]**   
- SG&A: $2,287 million (+44% YoY)  **[0001637459-23-000143_khc-20230930.htm:4]** **[0001637459-24-000144_khc-20240928.htm:5]**   
- Operating Income: -$101 million (down from $653 million, a **-115% YoY** swing)  **[0001637459-23-000143_khc-20230930.htm:4]** **[0001637459-24-000144_khc-20240928.htm:5]**   
- Net Income: -$29 million (down from $254 million YoY)  **[0001637459-23-000143_khc-20230930.htm:4]** **[0001637459-24-000144_khc-20240928.htm:5]**   
- EPS (Diluted): -$0.24 (down from $0.21 YoY)  **[0001637459-23-000143_khc-20230930.htm:4]** **[0001637459-24-000144_khc-20240928.htm:5]**   

731c8793bc5b29a8b5dde9da840061b841b76c84a410531f72383338cf75f0cb

3a8cae9aca8393db8574eb12dab81ed0ed75bcc7b71c717715e3835099f48ae3

Number of employees in Russia (count)

Pricing in North America (percentage points)

Volume/mix in North America (percentage points)

Pricing in International Developed Markets (percentage points)

Volume/mix in International Developed Markets (percentage points)

Pricing in Emerging Markets (percentage points)

Volume/mix in Emerging Markets (percentage points)

Pricing in Kraft Heinz (total) (percentage points)

Volume/mix in Kraft Heinz (total) (percentage points)

f0d6aaa97c1b2d10bde19dc646a401db6c16e67b555d35c0a69b565169d3ab05

| Year | Amount Due (in millions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|---------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | €600 (approx. $650) **[0001637459-24-000144_khc-20240928.htm:56]** | Floating Rate Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]** | Floating Rate **[0001637459-24-000144_exhibit221q32024.htm:0]** | 3.2% = (0.65B / 20.1B) * 100 **[0001637459-24-000144_khc-20240928.htm:56]** **[0001637459-24-000144_exhibit221q32024.htm:0]**                                      |
| 2026     | N/A                          | 3.000% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 3.000 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2027     | N/A                          | 3.875% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 3.875 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2027     | N/A                          | 4.125% British Pound Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]** | 4.125 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2028     | N/A                          | 2.250% Euro Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]** | 2.250 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2028     | N/A                          | 6.375% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 6.375 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2029     | N/A                          | 4.625% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 4.625 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2029     | N/A                          | 3.500% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 3.500 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2030     | N/A                          | 3.750% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 3.750 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2031     | N/A                          | 4.250% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 4.250 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2032     | N/A                          | 6.750% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 6.750 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2035     | N/A                          | 5.000% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 5.000 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2039     | N/A                          | 6.875% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 6.875 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2039     | N/A                          | 7.125% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 7.125 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2039     | N/A                          | 4.625% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 4.625 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2040     | N/A                          | 6.500% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 6.500 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2042     | N/A                          | 5.000% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 5.000 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2045     | N/A                          | 5.200% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 5.200 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2046     | N/A                          | 4.375% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 4.375 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2049     | N/A                          | 4.875% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 4.875 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |
| 2050     | N/A                          | 5.500% Senior Notes **[0001637459-24-000144_exhibit221q32024.htm:0]**     | 5.500 **[0001637459-24-000144_exhibit221q32024.htm:0]**         | N/A                                                                                |

d0b99d7487f451b3effd5a15406cc3b6ec1074357dfc47f693f9b2440f6a0066

- **Kraft Heinz experienced a decline in organic net sales of 0.5% in the first quarter of 2024**, with **North America sales down 1.2%** and **international developed markets down 1.3%**, indicating potential challenges in driving top-line growth.  **[KHC_3384652_4]**
- The company is facing industry softness in the U.S., particularly in the **Away-From-Home segment**, where sales were negatively impacted by **a softening restaurant market** and **two planned business exits**, resulting in an approximate **$15 million reduction in topline revenue per quarter**.  **[KHC_3384652_6]** **[KHC_3384652_1]** **[KHC_3384652_4]**
- **Kraft Heinz is losing market share in developed markets**, and while they are seeing improvements as price gaps narrow, the decline in **organic net sales in their BALANCE platforms** suggests challenges in maintaining performance and profitability across all segments.  **[KHC_3384652_4]**

828e7c1b3b42954233dd77097fa31a10d7beb08cdab88fd224082bb6d11b116b

- **Kraft Heinz is achieving gross margin expansion despite onetime negative impacts, and expects continuous gross margin expansion into 2025** due to strong efficiencies, supply chain improvements, and a focus on profitable growth.  **[KHC_3395268_10]**
- **The company is successfully gaining market share in key markets like the U.K., China, and Brazil**, even in challenging economic environments, indicating strong brand performance and effective strategies.  **[KHC_3395268_5]**
- **Kraft Heinz is focused on innovating and renovating its product offerings**, such as new Mac & Cheese varieties and partnerships like Taco Bell and Delimex, to drive sustainable growth and provide value to consumers, while maintaining price increases below inflation and investing in marketing and R&D.  **[KHC_3395268_1]** **[KHC_3395268_3]**

20455d8f2c568a3281fab3089bcc26930f4d7af053307eeca1cc40b5ff7ec585

1. **2025 Algorithm Pace and U.S. Retail Challenges**  
   **Q:** Will Kraft Heinz reach its long-term algorithm pace in 2025, and what are the factors affecting U.S. retail recovery?  
   **A:** Management does not expect to reach the long-term algorithm pace at any point during 2025 due to continued pressure in the U.S. retail sector.  **[KHC_3404630_2]**  Challenges stem from changes in industry dynamics, elevated consumer trade-down, and specific issues in four key categories that require longer recovery periods.  **[KHC_3404630_2]**  Despite these hurdles, the company remains confident in its long-term strategy, focusing on growing base volume through **innovation**, **renovation**, and targeted promotions.  **[KHC_3404630_2]** 

2. **Lunchables Brand Impairment**  
   **Q:** How does the large charge related to Lunchables reflect the company's belief in the brand's potential recovery?  
   **A:** The impairment charge results from the current decline in Lunchables sales and the expectation of a gradual recovery, which affects future cash flow projections.  **[KHC_3404630_3]**  Despite this charge, management views Lunchables as a **very important brand** and is committed to turning it around through flavor expansion, value reimagining, new marketing campaigns, and product renovation in the first half of 2025.  **[KHC_3404630_3]** 

3. **Lunchables Ingredient Supplier Issue**  
   **Q:** What is the ingredient supplier issue affecting Lunchables, and how is it impacting sales?  
   **A:** A supplier was unable to fulfill a particular ingredient for one important SKU of Lunchables, causing a **short-term shortage** mainly impacting the current quarter and Q4.  **[KHC_3404630_4]**  Management expects to resolve this issue in the near future and return to normal supply levels in the first half of 2025.  **[KHC_3404630_4]** 

4. **Spoonables Category Challenges**  
   **Q:** What are the challenges facing the Spoonables category, and how is Kraft Heinz addressing them?  
   **A:** The Spoonables segment has experienced **soft sales** for several months, primarily due to unfavorable price gaps in the market.  **[KHC_3404630_5]**  Management acknowledges execution shortcomings and is working to adjust price positions and improve performance.  **[KHC_3404630_5]** 

5. **2025 Assumptions on Price Adjustments vs. Innovation**  
   **Q:** How is Kraft Heinz balancing price adjustments and innovation to address continued consumer trade-down in 2025?  
   **A:** The company prioritizes growing its brands through **superior products**, **better marketing**, and offering value formats for all consumers.  **[KHC_3404630_6]**  While acknowledging that promotions have a role, management focuses on innovation and renovation to drive brand strength over the long term rather than relying heavily on price adjustments.  **[KHC_3404630_6]** 

6. **Investment in Marketing and Promotions**  
   **Q:** Is Kraft Heinz planning significant investments in marketing or promotions to improve base trends?  
   **A:** Management emphasizes investing in **innovation**, **renovation**, and effective marketing to drive growth, already seeing progress in brands like Capri Sun and Mac & Cheese.  **[KHC_3404630_7]**  While promotions are used strategically where they lead to base growth, the focus remains on building brand strength through product superiority and marketing rather than large-scale promotional spending.  **[KHC_3404630_7]** 

7. **Mac & Cheese Business Performance**  
   **Q:** What challenges is Kraft Heinz facing in the Mac & Cheese category, and how are they addressing them?  
   **A:** The Mac & Cheese category is showing improvements, particularly in **cups format**, due to renovation and new flavors targeting different consumer segments.  **[KHC_3404630_8]**  Management is introducing new shapes, flavors, and leveraging popular properties like **Super Mario Brothers** to attract consumers, recognizing that innovation ramp-up requires patience.  **[KHC_3404630_8]** 

8. **Underlying Business Excluding Key Headwinds**  
   **Q:** How is Kraft Heinz's underlying business performing aside from the challenges with Lunchables and Capri Sun?  
   **A:** Management feels positive about the overall business, with two out of three growth pillars—**global away-from-home** and **emerging markets**—gaining momentum.  **[KHC_3404630_9]**  They are confident in addressing issues in specific brands by leveraging their brand growth system and continuing to invest in innovation, marketing, and productivity to drive long-term growth.  **[KHC_3404630_9]** 

bdc7816857bef02f164c32389ff03cdd357d15749bd40682696a333356c39dea

- **Kraft Heinz expanded adjusted gross profit margin by 170 basis points** in Q1 2024, driven by supply chain efficiencies, enabling increased investments in marketing (up **13%**), R&D (up **25%**), and technology (up **20%**) versus prior year.  **[KHC_3384652_6]**
- **Generated year-to-date free cash flow conversion of 56%, a 30-percentage point improvement** versus prior year, primarily driven by a **57% reduction in working capital**; returned **$636 million to stockholders**, including **$486 million in dividends** and **$150 million in share repurchases**.  **[KHC_3384652_6]**
- **Reiterated 2024 outlook**, expecting organic net sales growth of **0%-2%**, adjusted operating income growth of **2%-4%**, and adjusted EPS growth of **1%-3%**; increased expected adjusted gross profit margin expansion to a range of **50-100 basis points** from prior range of **25-75 basis points**.  **[KHC_3384652_6]**

1687b0a429ab3cd5cf322c70bb5d75fd26f6560dcab6ae7a5cd7f92b67c55a64

- **Weak volume growth and reliance on pricing rather than volume for achieving guidance.** The company stated that volumes do not need to turn positive for them to achieve their guidance  **[KHC_3395268_10]** .
- **Challenges in key markets like China and Brazil due to soft consumer demand and inventory adjustments.** In China, the industry continues to be soft, and in Brazil, consumers are showing fatigue, leading to the need for investments and impacting performance  **[KHC_3395268_10]** .
- **Gross margin expansion expected to be more gradual, with potential pressure from price investments and weaker volumes.** The company anticipates gross margin expansion into 2025 to be around **25 to 75 basis points**, lower than current levels  **[KHC_3395268_10]** .

986fb88c91a17afd011af4f913cfcf7c11b8e898c05f7a7c59593fb6623e7654

1. **Gross Margin Outlook**  
   **Q:** Will gross margins face pressure ahead?  
   **A:** Management believes gross margins will continue to expand despite concerns. They noted **substantial one-time impacts** in Q1 and Q2 that negatively affected gross margin, but still achieved expansion. They expect a more **muted year-over-year impact** in the second half as last year had a **big step-up**. Confident about continuous gross margin expansion into 2025, driven by strong efficiencies and a company-wide focus on driving efficiency. They emphasized that **healthy gross margins are key to a virtuous cycle of growth**. ( **[KHC_3395268_10]** )

2. **Volume Expectations in H2**  
   **Q:** Will volumes turn positive in the back half?  
   **A:** Management expects revenue and volume to gradually improve throughout the quarters. At their midpoint guidance, they do not need volumes to grow to achieve their targets. Price is expected to be around **1%** for the total portfolio. In emerging markets, volumes continue to be **positive**. In the U.S., they expect volumes to continue improving, but they don't need volumes to turn positive to achieve guidance. ( **[KHC_3395268_3]** )

3. **Factors Driving H2 Guidance**  
   **Q:** What are key drivers to hit H2 outlook?  
   **A:** Management highlighted different factors by region. In emerging markets, **distribution gains are working**, and volume is growing. In the away-from-home business, they are making improvements after plant closures and gaining new customers. In the U.S., growth is driven by **innovation**, **renovation**, and disciplined use of **revenue management tools**. They are focused on providing value in a sustainable way, bringing new products and solutions to consumers, and being thoughtful about investments in trade to maintain profitability. ( **[KHC_3395268_4]** )

4. **International Markets Performance**  
   **Q:** What's happening in the UK, China, and Brazil?  
   **A:** In the UK, significant inflation led to private label gaining traction. They stepped up investments to protect volume, focusing on price gaps, leading to positive volume share returns. In China, the industry continues to be soft, but they are **gaining market share** in modern trade. In Brazil, they continue to **gain market share**, but consumers are showing fatigue, and retailers have reduced inventories, impacting performance. They believe inventories are now at appropriate levels, which should allow improvement. ( **[KHC_3395268_5]** )

5. **Impact of Plant Closure on Away-from-Home Business**  
   **Q:** How did plant closures affect away-from-home sales?  
   **A:** The global away-from-home business declined **2.1%** in the quarter. The impact from the plant closure was about **200 basis points**, meaning they would have been flat without it. Planned exits at the end of last year had an impact of roughly **150 basis points**, so adjusted growth would be **1.5%**. The industry was softer in Q2, about **100 basis points** worse than Q1. They are addressing this by improving service and gaining new customers. Innovations like the **Heinz REMIX** are progressing with positive feedback from operators and consumers. ( **[KHC_3395268_7]** )

6. **Key Brands' Improvement in H2**  
   **Q:** Which brands will improve most in H2?  
   **A:** Management is focusing on improving **Lunchables** and **Capri Sun**, which were meaningful headwinds in Q2. For Lunchables, they are seeing a recovery, with renovations, **doubling marketing spend**, improving media mix, and increasing value for consumers, including innovation. For Capri Sun, they have renovated the product, investing **twice** the marketing versus 2023, secured strong back-to-school displays, invested in promotions, and expanded into new channels like club stores. They also expect **Mac & Cheese** to improve with new shapes, flavors, and tie-ins like **Super Mario Brothers**, providing value solutions for families. ( **[KHC_3395268_8]** )

7. **Management of Price Gaps and Promotions**  
   **Q:** How broad is the price point issue across portfolio?  
   **A:** Management is contemplating a step-up in trade investment levels, with promotions still well below **2019 levels**. They estimate that in **30% to 40%** of the portfolio, price gaps require some incremental investments in the U.S. They are focused on closing price gaps versus branded competitors where it makes sense for the long term but prefer to grow the business through innovation, renovation, and marketing rather than over-relying on promotions. ( **[KHC_3395268_2]** )

8. **Competing on Non-Price Factors in North America**  
   **Q:** Can you compete on non-price factors?  
   **A:** Management believes they can redefine their portfolio through innovation and marketing. They have iconic brands and have been renovating and innovating, such as with **Philadelphia** and **Jell-O**. They are providing consumers with options at different price points and expanding accessibility by increasing distribution in the dollar channel and club stores. They aim to offer value in a sustainable way, focusing on making products available where consumers are shopping. ( **[KHC_3395268_6]** )

1b8c4b5b60d4b8a88f1f5a77758ce5a3860c116d80641c39943132145b648717

Kraft Heinz Co (KHC)

Financials