Stock Analysis on Net
AI Tokens
Stock Analysis on Net

Kraft Heinz Co. (NASDAQ:KHC)

This company has been moved to the archive! The financial data has not been updated since July 31, 2020.

Common-Size Income Statement
Quarterly Data

Kraft Heinz Co., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 27, 2020 Mar 28, 2020 Dec 28, 2019 Sep 28, 2019 Jun 29, 2019 Mar 30, 2019 Dec 29, 2018 Sep 29, 2018 Jun 30, 2018 Mar 31, 2018 Dec 30, 2017 Sep 30, 2017 Jul 1, 2017 Apr 1, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold -63.12 -69.82 -67.76 -67.96 -67.50 -66.25 -67.84 -67.19 -64.92 -64.09 -65.00 -63.35 -59.85 -63.84 -64.14 -64.61 -62.74 -63.81 -66.25 -73.40 -66.28 -65.82
Gross profit 36.88% 30.18% 32.24% 32.04% 32.50% 33.75% 32.16% 32.81% 35.08% 35.91% 35.00% 36.65% 40.15% 36.16% 35.86% 35.39% 37.26% 36.19% 33.75% 26.60% 33.72% 34.18%
Selling, general and administrative expenses, excluding impairment losses -13.81 -14.00 -12.81 -12.54 -11.71 -13.91 -12.80 -12.58 -11.30 -12.12 -10.44 -10.34 -11.38 -11.79 -12.82 -12.85 -13.18 -13.17 -15.68 -20.08 -16.74 -13.64
Goodwill impairment losses -27.33 -3.67 -6.93 0.00 -1.94 -10.40 -99.77 0.00 -1.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Intangible asset impairment losses -15.88 0.00 -3.41 -0.08 -7.40 0.00 -124.95 -3.40 -1.51 0.00 -0.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Selling, general and administrative expenses -57.02% -17.67% -23.15% -12.62% -21.04% -24.32% -237.51% -15.98% -14.80% -12.12% -11.15% -10.34% -11.38% -11.79% -12.82% -12.85% -13.18% -13.17% -15.68% -20.08% -16.74% -13.64%
Operating income (loss) -20.14% 12.51% 9.09% 19.42% 11.46% 9.43% -205.35% 16.83% 20.28% 23.79% 23.85% 26.31% 28.77% 24.37% 23.04% 22.55% 24.08% 23.03% 18.07% 6.52% 16.97% 20.54%
Interest expense -6.65 -5.03 -4.99 -6.55 -4.93 -5.39 -4.72 -5.11 -4.72 -5.03 -4.48 -4.85 -4.60 -4.92 -4.52 -4.96 -3.89 -3.79 -3.73 -7.52 -15.06 -8.11
Other income (expense) 1.17 1.32 0.90 6.25 2.08 6.38 0.03 1.11 0.30 1.43 -0.01 0.06 -0.36 0.19 0.15 0.05 -0.09 0.12 0.13 -1.76 -9.37 1.57
Income (loss) before income taxes -25.62% 8.79% 5.00% 19.12% 8.60% 10.42% -210.04% 12.83% 15.86% 20.19% 19.35% 21.52% 23.81% 19.64% 18.67% 17.63% 20.11% 19.36% 14.46% -2.76% -7.45% 14.00%
(Provision for) benefit from income taxes 0.77 -2.60 -2.20 -4.34 -1.61 -3.64 26.79 -3.15 -4.60 -4.28 96.92 -6.59 -6.44 -5.64 -4.90 -4.18 -6.05 -5.66 -5.36 0.80 1.34 -2.74
Net income (loss) -24.85% 6.19% 2.80% 14.78% 6.99% 6.78% -183.25% 9.68% 11.26% 15.91% 116.27% 14.94% 17.37% 14.00% 13.77% 13.45% 14.06% 13.70% 9.10% -1.96% -6.12% 11.26%
Net (income) loss attributable to noncontrolling interest 0.02 -0.05 -0.02 0.02 0.02 0.02 0.87 0.02 0.01 0.00 0.10 0.02 -0.01 0.03 0.00 -0.02 -0.07 -0.06 -0.04 -0.05 -0.15 -0.12
Net income (loss) attributable to Kraft Heinz -24.83% 6.14% 2.78% 14.80% 7.01% 6.80% -182.38% 9.70% 11.27% 15.91% 116.37% 14.95% 17.36% 14.03% 13.77% 13.44% 13.98% 13.64% 9.05% -2.01% -6.27% 11.14%
Preferred dividends 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -2.65 0.00 -5.05 -2.94 -6.88 -7.26
Net income (loss) attributable to common shareholders -24.83% 6.14% 2.78% 14.80% 7.01% 6.80% -182.38% 9.70% 11.27% 15.91% 116.37% 14.95% 17.36% 14.03% 13.77% 13.44% 11.34% 13.64% 4.00% -4.95% -13.15% 3.87%

Based on: 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-30), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-07-01), 10-Q (reporting date: 2017-04-01), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), S-4/A (reporting date: 2015-03-29).

An analysis of the common-size income statement reveals significant volatility in profitability, primarily driven by substantial non-cash impairment charges rather than fluctuations in core operational efficiency. While gross margins remained relatively stable over the observed period, the bottom line was periodically disrupted by massive write-downs of assets.

Gross Profitability and Cost of Sales
The cost of products sold generally fluctuated between 59% and 73% of net sales. Gross profit margins typically ranged from 30% to 40%, peaking at 40.15% in July 2017. A notable dip occurred in March 2020, where gross profit fell to 30.18%, before recovering to 36.88% by June 2020. This indicates a baseline capacity to maintain margins, despite occasional pressure on input costs.
Operating Expenses and Asset Impairments
Selling, general, and administrative (SG&A) expenses, excluding impairments, showed a positive trend of optimization, decreasing from a peak of 20.08% in September 2015 to consistently lower levels between 10% and 14% in subsequent years. However, this operational efficiency was overshadowed by severe impairment losses. A critical event occurred in December 2018, where combined goodwill and intangible asset impairment losses exceeded 224% of net sales, resulting in an operating loss of 205.35%. Similar, though smaller, impairments recurred in June 2020, contributing to an operating loss of 20.14%.
Net Income and Tax Anomalies
Net income exhibited extreme variance due to the aforementioned impairments and specific tax events. In December 2017, net income surged to 116.27% of net sales, largely attributable to a significant tax benefit of 96.92%. Conversely, the December 2018 period saw net income collapse to -183.25% of net sales. Following these extremes, net income generally stabilized between 2% and 15% of sales, until another decline to -24.85% in June 2020.
Interest and Financial Obligations
Interest expenses remained relatively consistent as a percentage of net sales, generally fluctuating between 3.7% and 6.6%. This stability suggests a consistent debt service burden relative to the company's revenue stream, regardless of the volatility experienced in operating income and net profit.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?