Operating Profit Margin
since 2015
Calculation
Kraft Heinz Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 28, 2019 | 12.29% | = | 100 | × | 3,070) | ÷ | 24,977) |
| Dec 29, 2018 | -38.91% | = | 100 | × | (10,220) | ÷ | 26,268) |
| Dec 30, 2017 | 25.82% | = | 100 | × | 6,773) | ÷ | 26,232) |
| Dec 31, 2016 | 23.19% | = | 100 | × | 6,142) | ÷ | 26,487) |
| Dec 31, 2015 | 14.39% | = | 100 | × | 2,639) | ÷ | 18,338) |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$ in millions
- Operating Income (Loss)
- The operating income exhibited significant fluctuations throughout the observed periods. It rose notably from 2,639 million USD in 2015 to a peak of 6,773 million USD in 2017, indicating substantial operational profitability improvement. However, in 2018, there was a sharp reversal, with operating income turning into a loss of 10,220 million USD. The following year, 2019, showed a recovery to a positive operating income of 3,070 million USD, though it remained below the earlier peak levels.
- Net Sales
- Net sales increased significantly from 18,338 million USD in 2015 to 26,487 million USD in 2016, with a relatively stable level around 26,000 million USD for the subsequent years through 2018. In 2019, there was a decline to 24,977 million USD, reflecting a reduction in sales volume or revenue compared to the previous three years.
- Operating Profit Margin
- The operating profit margin followed a trend similar to operating income. It improved consistently from 14.39% in 2015 to 25.82% in 2017, demonstrating enhanced operational efficiency and profitability. In 2018, the margin sharply declined to a negative 38.91%, highlighting significant operational challenges causing losses. The margin partially recovered to 12.29% in 2019, though it did not return to the earlier higher profitability levels.
Comparison to Competitors
Kraft Heinz Co., operating profit margin, long-term trends, comparison to competitors
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 28, 2019 | 12.29% | 27.06% | 14.86% | 15.32% | 35.33% |
| Dec 29, 2018 | -38.91% | 27.31% | 12.77% | 15.64% | 38.40% |
| Dec 30, 2017 | 25.82% | 21.18% | 13.54% | 16.54% | 40.01% |
| Dec 31, 2016 | 23.19% | 20.61% | 9.91% | 15.58% | 40.53% |
| Dec 31, 2015 | 14.39% | 19.70% | 30.02% | 13.25% | 39.65% |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).