Analysis of Reportable Segments
Kraft Heinz Co. operates in 4 segments: United States; Canada; Europe, Middle East, and Africa (EMEA); and Latin America and Asia Pacific (APAC).
Segment Profit Margin
Kraft Heinz Co., profit margin by reportable segment
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 27.08% | 28.79% | 32.22% | 31.10% | — |
| Canada | 25.88% | 27.98% | 29.21% | 27.45% | — |
| Europe, Middle East, and Africa (EMEA) | 25.91% | 26.64% | 26.03% | 28.65% | — |
| Latin America and Asia Pacific (APAC) | 13.02% | 19.51% | 19.13% | 21.10% | — |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | United States | United States segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Canada | Canada segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. | |
| Europe, Middle East, and Africa (EMEA) | Europe, Middle East, and Africa (EMEA) segment profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. | |
| Latin America and Asia Pacific (APAC) | Latin America and Asia Pacific (APAC) segment profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Segment Profit Margin: United States
Kraft Heinz Co.; United States; segment profit margin calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 4,809) | 5,218) | 5,873) | 5,744) | —) |
| Net sales | 17,756) | 18,122) | 18,230) | 18,469) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 27.08% | 28.79% | 32.22% | 31.10% | — |
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 2019 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Net sales
= 100 × 4,809 ÷ 17,756 = 27.08%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | United States | United States segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Segment Profit Margin: Canada
Kraft Heinz Co.; Canada; segment profit margin calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 487) | 608) | 636) | 632) | —) |
| Net sales | 1,882) | 2,173) | 2,177) | 2,302) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 25.88% | 27.98% | 29.21% | 27.45% | — |
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 2019 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Net sales
= 100 × 487 ÷ 1,882 = 25.88%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Canada | Canada segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Segment Profit Margin: Europe, Middle East, and Africa (EMEA)
Kraft Heinz Co.; Europe, Middle East, and Africa (EMEA); segment profit margin calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 661) | 724) | 673) | 741) | —) |
| Net sales | 2,551) | 2,718) | 2,585) | 2,586) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 25.91% | 26.64% | 26.03% | 28.65% | — |
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).
1 2019 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Net sales
= 100 × 661 ÷ 2,551 = 25.91%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Europe, Middle East, and Africa (EMEA) | Europe, Middle East, and Africa (EMEA) segment profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Segment Profit Margin: Latin America and Asia Pacific (APAC)
Kraft Heinz Co.; Latin America and Asia Pacific (APAC); segment profit margin calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 363) | 635) | 590) | 621) | —) |
| Net sales | 2,788) | 3,255) | 3,084) | 2,943) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 13.02% | 19.51% | 19.13% | 21.10% | — |
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 2019 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Net sales
= 100 × 363 ÷ 2,788 = 13.02%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Latin America and Asia Pacific (APAC) | Latin America and Asia Pacific (APAC) segment profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Segment Capital Expenditures to Depreciation
Kraft Heinz Co., capital expenditures to depreciation by reportable segment
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 0.65 | 0.62 | 1.16 | 0.87 | — |
| Canada | 0.77 | 0.54 | 0.88 | 0.54 | — |
| Europe, Middle East, and Africa (EMEA) | 1.25 | 1.22 | 1.28 | 1.32 | — |
| Latin America and Asia Pacific (APAC) | 1.20 | 1.98 | 1.88 | 1.14 | — |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | United States | United States segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Canada | Canada segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. | |
| Europe, Middle East, and Africa (EMEA) | Europe, Middle East, and Africa (EMEA) segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. | |
| Latin America and Asia Pacific (APAC) | Latin America and Asia Pacific (APAC) segment capital expenditures to depreciation ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Segment Capital Expenditures to Depreciation: United States
Kraft Heinz Co.; United States; segment capital expenditures to depreciation calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 393) | 388) | 764) | 843) | —) |
| Depreciation and amortization expense | 609) | 626) | 658) | 966) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.65 | 0.62 | 1.16 | 0.87 | — |
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 2019 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= 393 ÷ 609 = 0.65
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | United States | United States segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Segment Capital Expenditures to Depreciation: Canada
Kraft Heinz Co.; Canada; segment capital expenditures to depreciation calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 27) | 21) | 42) | 30) | —) |
| Depreciation and amortization expense | 35) | 39) | 48) | 56) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.77 | 0.54 | 0.88 | 0.54 | — |
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 2019 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= 27 ÷ 35 = 0.77
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Canada | Canada segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Segment Capital Expenditures to Depreciation: Europe, Middle East, and Africa (EMEA)
Kraft Heinz Co.; Europe, Middle East, and Africa (EMEA); segment capital expenditures to depreciation calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 134) | 124) | 127) | 115) | —) |
| Depreciation and amortization expense | 107) | 102) | 99) | 87) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.25 | 1.22 | 1.28 | 1.32 | — |
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 2019 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= 134 ÷ 107 = 1.25
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Europe, Middle East, and Africa (EMEA) | Europe, Middle East, and Africa (EMEA) segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Segment Capital Expenditures to Depreciation: Latin America and Asia Pacific (APAC)
Kraft Heinz Co.; Latin America and Asia Pacific (APAC); segment capital expenditures to depreciation calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 149) | 236) | 184) | 96) | —) |
| Depreciation and amortization expense | 124) | 119) | 98) | 84) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.20 | 1.98 | 1.88 | 1.14 | — |
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 2019 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= 149 ÷ 124 = 1.20
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Latin America and Asia Pacific (APAC) | Latin America and Asia Pacific (APAC) segment capital expenditures to depreciation ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Net sales
Kraft Heinz Co., net sales by reportable segment
US$ in millions
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 17,756) | 18,122) | 18,230) | 18,469) | —) |
| Canada | 1,882) | 2,173) | 2,177) | 2,302) | —) |
| Europe, Middle East, and Africa (EMEA) | 2,551) | 2,718) | 2,585) | 2,586) | —) |
| Latin America and Asia Pacific (APAC) | 2,788) | 3,255) | 3,084) | 2,943) | —) |
| Total | 24,977) | 26,268) | 26,076) | 26,300) | —) |
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).
Adjusted EBITDA
Kraft Heinz Co., adjusted ebitda by reportable segment
US$ in millions
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 4,809) | 5,218) | 5,873) | 5,744) | —) |
| Canada | 487) | 608) | 636) | 632) | —) |
| Europe, Middle East, and Africa (EMEA) | 661) | 724) | 673) | 741) | —) |
| Latin America and Asia Pacific (APAC) | 363) | 635) | 590) | 621) | —) |
| Total | 6,320) | 7,185) | 7,772) | 7,738) | —) |
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).
Depreciation and amortization expense
Kraft Heinz Co., depreciation and amortization expense by reportable segment
US$ in millions
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 609) | 626) | 658) | 966) | —) |
| Canada | 35) | 39) | 48) | 56) | —) |
| Europe, Middle East, and Africa (EMEA) | 107) | 102) | 99) | 87) | —) |
| Latin America and Asia Pacific (APAC) | 124) | 119) | 98) | 84) | —) |
| General corporate expenses | 119) | 97) | 128) | 144) | —) |
| Total | 994) | 983) | 1,031) | 1,337) | —) |
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).
Capital expenditures
Kraft Heinz Co., capital expenditures by reportable segment
US$ in millions
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 393) | 388) | 764) | 843) | —) |
| Canada | 27) | 21) | 42) | 30) | —) |
| Europe, Middle East, and Africa (EMEA) | 134) | 124) | 127) | 115) | —) |
| Latin America and Asia Pacific (APAC) | 149) | 236) | 184) | 96) | —) |
| General corporate expenses | 65) | 57) | 77) | 163) | —) |
| Total | 768) | 826) | 1,194) | 1,247) | —) |
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).