The Kraft Heinz Company (KHC) investor relations material

Executive summary

• Management expressed confidence in business momentum, supported by incremental investments and a positive setup for 2027, especially in the U.S. and emerging markets.

• Raised full-year Organic Net Sales outlook, reflecting ongoing investments and brand strength.

• Strategic partnerships with Disney and the NFL, and new product launches, are expected to enhance consumer engagement and brand visibility.

• Strategic focus on volume-led, sustainable, and profitable top-line growth, with continued strong cash flow generation.

• Net sales for Q2 2026 decreased 1.4% year-over-year to $6.3 billion; organic net sales declined 1.3%.

Financial highlights

• Q2 2026 Organic Net Sales: $6.2B, down 1.3% year-over-year; net sales for Q2 2026 decreased 1.4% to $6.3B.

• Adjusted Gross Profit Margin: 34.1%, flat year-over-year.

• Adjusted Operating Income: $1.0B, down 18.4% year-over-year.

• Adjusted EPS: $0.56, down 18.8% year-over-year.

• Free cash flow for the year-to-date rose 10.3% to $1.7 billion, with free cash flow conversion at 123%.

Outlook and guidance

• Fiscal 2026 organic net sales expected to decline 0.5% to 2.0% year-over-year, including a 100 basis point SNAP headwind.

• Constant currency adjusted operating income projected to decrease 16% to 18%.

• Adjusted EPS forecasted between $2.03 and $2.09; effective tax rate on adjusted EPS expected at 24.5%.

• Free cash flow conversion expected at approximately 110%.

• At least 6% of net sales to be invested in marketing; inflation expected slightly above 4%.