Q4 2024 Kraft Heinz Co Earnings Call Transcript
Key Points
- The Kraft Heinz Co (KHC) returned $2.7 billion to shareholders through share buybacks and dividends, providing the highest yield in the food industry.
- The company has locked in 75% of new customer wins in the Away From Home segment, contributing to a 40% year-over-year incremental growth.
- In Emerging Markets, The Kraft Heinz Co (KHC) plans to increase distribution by 40,000 additional points in 2025, building on a 17% increase from the previous year.
- 75% of the 2025 innovation pipeline is already secured, indicating a strong focus on product development and market readiness.
- The company is investing in technology-led solutions to drive efficiencies and improve margins, alongside increased consumer-facing marketing efforts.
- The Kraft Heinz Co (KHC) faces challenges in achieving volume growth for key brands, with concerns about whether current investment levels are sufficient.
- The company is experiencing market share softness in the US, particularly in the Retail segment, which is impacting overall performance.
- There is a lingering supplier issue affecting the Lunchables brand, which is expected to continue impacting sales into the first quarter of 2025.
- The company's tax rate is expected to increase by 500 basis points in 2025, impacting the P&L, although cash tax rate impact is lower.
- Despite improvements, the company's marketing spend as a percentage of revenue remains below some peers, raising questions about sufficiency in competitive dynamics.
Good morning, and welcome to the Kraft Heinz Company quarter four 2024 earnings. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce Anne-Marie Megela. Thank you, Anne. You may begin.
Thank you, and hello, everyone. During today's call, we may make forward-looking statements regarding our expectations for the future, including items related to our business plans and expectations, strategy, efforts and investments, and related timing and expected impacts.
These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statements and risk factors contained in today's earnings release, which accompanies this call as well as our most recent 10-K, 10-Q, and 8-K filings for more information regarding these risks and uncertainties.
Additionally, we may refer to non-GAAP financial measures,
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