Name: Kraft Heinz Co. (NASDAQ:KHC) | Income Statement (Quarterly)
Creator: Stock Analysis on Net

Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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

US$ in millions

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	6,648)	6,157)	6,536)	6,076)	6,406)	5,959)	6,891)	6,383)	6,690)	6,304)	6,877)	6,314)	6,677)	6,364)	6,857)	6,267)	6,793)	6,570)	7,124)	6,120)	2,616)	2,478)
Cost of products sold	(4,196)	(4,299)	(4,429)	(4,129)	(4,324)	(3,948)	(4,675)	(4,289)	(4,343)	(4,040)	(4,470)	(4,000)	(3,996)	(4,063)	(4,398)	(4,049)	(4,262)	(4,192)	(4,720)	(4,492)	(1,734)	(1,631)
Gross profit	2,452)	1,858)	2,107)	1,947)	2,082)	2,011)	2,216)	2,094)	2,347)	2,264)	2,407)	2,314)	2,681)	2,301)	2,459)	2,218)	2,531)	2,378)	2,404)	1,628)	882)	847)
Selling, general and administrative expenses, excluding impairment losses	(918)	(862)	(837)	(762)	(750)	(829)	(882)	(803)	(756)	(764)	(718)	(653)	(760)	(750)	(879)	(805)	(895)	(865)	(1,117)	(1,229)	(438)	(338)
Goodwill impairment losses	(1,817)	(226)	(453)	—)	(124)	(620)	(6,875)	—)	(133)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Intangible asset impairment losses	(1,056)	—)	(223)	(5)	(474)	—)	(8,610)	(217)	(101)	—)	(49)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Selling, general and administrative expenses	(3,791)	(1,088)	(1,513)	(767)	(1,348)	(1,449)	(16,367)	(1,020)	(990)	(764)	(767)	(653)	(760)	(750)	(879)	(805)	(895)	(865)	(1,117)	(1,229)	(438)	(338)
Operating income (loss)	(1,339)	770)	594)	1,180)	734)	562)	(14,151)	1,074)	1,357)	1,500)	1,640)	1,661)	1,921)	1,551)	1,580)	1,413)	1,636)	1,513)	1,287)	399)	444)	509)
Interest expense	(442)	(310)	(326)	(398)	(316)	(321)	(325)	(326)	(316)	(317)	(308)	(306)	(307)	(313)	(310)	(311)	(264)	(249)	(266)	(460)	(394)	(201)
Other income (expense)	78)	81)	59)	380)	133)	380)	2)	71)	20)	90)	(1)	4)	(24)	12)	10)	3)	(6)	8)	9)	(108)	(245)	39)
Income (loss) before income taxes	(1,703)	541)	327)	1,162)	551)	621)	(14,474)	819)	1,061)	1,273)	1,331)	1,359)	1,590)	1,250)	1,280)	1,105)	1,366)	1,272)	1,030)	(169)	(195)	347)
(Provision for) benefit from income taxes	51)	(160)	(144)	(264)	(103)	(217)	1,846)	(201)	(308)	(270)	6,665)	(416)	(430)	(359)	(336)	(262)	(411)	(372)	(382)	49)	35)	(68)
Net income (loss)	(1,652)	381)	183)	898)	448)	404)	(12,628)	618)	753)	1,003)	7,996)	943)	1,160)	891)	944)	843)	955)	900)	648)	(120)	(160)	279)
Net (income) loss attributable to noncontrolling interest	1)	(3)	(1)	1)	1)	1)	60)	1)	1)	—)	7)	1)	(1)	2)	—)	(1)	(5)	(4)	(3)	(3)	(4)	(3)
Net income (loss) attributable to Kraft Heinz	(1,651)	378)	182)	899)	449)	405)	(12,568)	619)	754)	1,003)	8,003)	944)	1,159)	893)	944)	842)	950)	896)	645)	(123)	(164)	276)
Preferred dividends	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(180)	—)	(360)	(180)	(180)	(180)
Net income (loss) attributable to common shareholders	(1,651)	378)	182)	899)	449)	405)	(12,568)	619)	754)	1,003)	8,003)	944)	1,159)	893)	944)	842)	770)	896)	285)	(303)	(344)	96)

The financial performance over the analyzed period is characterized by stable top-line revenue countered by extreme volatility in net income, driven primarily by significant non-cash impairment charges and one-time tax adjustments. Net sales demonstrated a period of relative stagnation, generally fluctuating between 6.0 billion and 6.9 billion US dollars per quarter from 2016 through mid-2020, with a slight downward trend emerging in late 2018 and 2019.

Revenue and Gross Profitability: Net sales remained largely range-bound, showing minimal growth. Gross profit margins remained relatively consistent, though a gradual decline is observable; gross profit frequently exceeded 2.3 billion US dollars between 2016 and 2017 but trended toward the 1.9 billion to 2.1 billion US dollar range by 2019. This suggests a compression in gross margins over time.
Operating Expenses and Impairment Events: Selling, general and administrative (SG&A) expenses, excluding impairments, remained stable between 650 million and 900 million US dollars for most of the period. However, a critical inflection point occurred in the quarter ending December 29, 2018, where the company recognized massive impairment losses: 6.875 billion US dollars in goodwill and 8.610 billion US dollars in intangible assets. This resulted in a quarterly operating loss of 14.151 billion US dollars.
Net Income and Tax Volatility: Net income was subject to extreme swings due to non-operational items. A substantial positive anomaly occurred on December 30, 2017, where a tax benefit of 6.665 billion US dollars inflated net income to nearly 8 billion US dollars. Conversely, the December 2018 impairments led to a net loss of 12.628 billion US dollars. Following these events, net income returned to a more normalized but lower range, with a notable return to an operating loss in June 2020.
Financial Obligations: Interest expenses remained relatively constant, typically ranging between 300 million and 320 million US dollars per quarter. A spike in interest expense to 442 million US dollars was recorded in June 2020, coinciding with an operating loss, indicating increased financial pressure toward the end of the observed period.

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Kraft Heinz Co. (NASDAQ:KHC)

Income StatementQuarterly Data

Income Statement
Quarterly Data