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Exhibit 99.1

SUPPLEMENTAL HISTORICAL SEGMENT FINANCIAL INFORMATION AND SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

Table of Contents

 

     Page No.  

Introduction

     1  

Results of Operations by Segment

     2  

Non-GAAP Financial Measures

     3  

Unless the context otherwise requires, the terms “we,” “us,” “our,” “Kraft Heinz,” and the “Company” each refer to The Kraft Heinz Company.


Forward-Looking Statements

This supplemental information contains a number of forward-looking statements. Words such as “anticipate,” “reflect,” “invest,” “see,” “make,” “expect,” “give,” “deliver,” “drive,” “believe,” “improve,” “assess,” “reassess,” “remain,” “evaluate,” “grow,” “will,” “plan,” “intend,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our plans, impacts of accounting standards and guidance, growth, legal matters, taxes, costs and cost savings, impairments, and dividends. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond our control.

Important factors that may affect our business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, operating in a highly competitive industry; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in our relationships with significant customers, suppliers, and other business relationships; our ability to maintain, extend, and expand our reputation and brand image; our ability to leverage our brand value to compete against private label products; our ability to drive revenue growth in our key product categories, increase our market share, or add products that are in faster-growing and more profitable categories; product recalls or product liability claims; unanticipated business disruptions; our ability to identify, complete, or realize the benefits from strategic acquisitions, alliances, divestitures, joint ventures, or other investments; our ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness; our ability to successfully execute our strategic initiatives; the impacts of our international operations; economic and political conditions in the United States and in various other nations where we do business; changes in our management team or other key personnel and our ability to hire or retain key personnel or a highly skilled and diverse global workforce; risks associated with information technology and systems, including service interruptions, misappropriation of data, or breaches of security; impacts of natural events in the locations in which we or our customers, suppliers, distributors, or regulators operate; our ownership structure; our indebtedness and ability to pay such indebtedness, as well as our ability to comply with covenants under our debt instruments; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; increased pension, labor and people-related expenses; compliance with laws, regulations, and related interpretations and related legal claims or other regulatory enforcement actions, including additional risks and uncertainties related to any potential actions resulting from the Securities and Exchange Commission’s ongoing investigation, as well as potential additional subpoenas, litigation, and regulatory proceedings; an inability to remediate the material weaknesses in our internal control over financial reporting or additional material weaknesses or other deficiencies in the future or the failure to maintain an effective system of internal controls; our failure to prepare and timely file our periodic reports; the restatement of certain of our previously issued consolidated financial statements, which resulted in unanticipated costs and may affect investor confidence and raise reputational issues; our ability to protect intellectual property rights; tax law changes or interpretations; the impact of future sales of our common stock in the public markets; our ability to continue to pay a regular dividend and the amounts of any such dividends; volatility of capital markets and other macroeconomic factors; a downgrade in our credit rating; and other factors. For additional information on these and other factors that could affect our forward-looking statements, see Item 1A, Risk Factors, disclosed in our Annual Report on Form 10-K for the year ended December 28, 2019. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulation.


Introduction

Background:

In the first quarter of our fiscal year 2020, we reorganized our segments. For informational purposes only, we have furnished this exhibit to present the effects of these changes to certain previously disclosed financial information, including certain unaudited information related to our results of operations by segment and non-GAAP financial measures, for the years ended December 28, 2019, December 29, 2018, and December 30, 2017, as well as for each of the three months ended March 30, 2019, June 29, 2019, September 28, 2019, and December 28, 2019. The segment reorganization in the first quarter of our fiscal year 2020 had no impact on our consolidated financial statements for any of the periods presented in our Annual Report on Form 10-K for the year ended December 28, 2019 (“2019 Form 10-K”) filed on February 14, 2020.

The following unaudited financial information is based on our historical financial statements after giving effect to the segment reorganization in the first quarter of our fiscal year 2020. You should read this report in conjunction with our audited consolidated financial statements and related notes in our 2019 Form 10-K. The financial information contained in this report is not indicative of future or annual results.

Segment Changes:

As previously described in our 2019 Form 10-K, prior to the reorganization of our segments in the first quarter of our fiscal year 2020, we managed and reported our operating results through four segments. We had three reportable segments defined by geographic region: United States, Canada, and Europe, Middle East, and Africa (“EMEA”). Our remaining businesses were combined and disclosed as “Rest of World.” Rest of World comprised two operating segments: Latin America and Asia Pacific (“APAC”).

During the third quarter of our fiscal year 2019, certain organizational changes were announced that impacted our fiscal year 2020 internal reporting and reportable segments. As a result of these changes, we combined our EMEA, Latin America, and APAC zones to form the International zone. In addition, we moved our Puerto Rico business from the Latin America zone to the United States zone to consolidate and streamline the management of our product categories and supply chain.

Therefore, effective in the first quarter of 2020, we manage and report our operating results through three reportable segments defined by geographic region: United States, International, and Canada.

 

1


Results of Operations by Segment

In this supplemental information, we disclose certain non-GAAP financial measures. These non-GAAP financial measures assist management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our underlying operations. For additional information and reconciliations from GAAP financial measures see the Non-GAAP Financial Measures section.

Management evaluates segment performance based on several factors, including net sales, Organic Net Sales, and Segment Adjusted EBITDA. Organic Net Sales is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for additional information. Segment Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding integration and restructuring expenses); in addition to these adjustments, we exclude, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). Segment Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.

 

    2019 compared to 2018     2018 compared to 2017  
    For the Year Ended  
    December 28,
2019
    December 29,
2018
    December 29,
2018
    December 30,
2017
 
    (in millions)  

United States

       

Net sales

  $ 17,844     $ 18,218     $ 18,218     $ 18,324  

Organic Net Sales(a)

    17,844       18,218       18,218       18,324  

Segment Adjusted EBITDA

    4,829       5,242       5,242       5,898  

International

       

Net sales

    5,251       5,877       5,877       5,575  

Organic Net Sales(a)

    5,417       5,443       5,533       5,210  

Segment Adjusted EBITDA

    1,004       1,335       1,335       1,238  

Canada

       

Net sales

    1,882       2,173       2,173       2,177  

Organic Net Sales(a)

    1,700       1,732       1,735       1,747  

Segment Adjusted EBITDA

    487       608       608       636  
                                                                                           

(a)  This is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information.

 

    For the Three Months Ended  
    March 30,
2019
    June 29,
2019
    September 28,
2019
    December 28,
2019
 
    (in millions)  

United States

       

Net sales

  $ 4,224     $ 4,533     $ 4,385     $ 4,702  

Organic Net Sales(a)

    4,224       4,533       4,385       4,702  

Segment Adjusted EBITDA

    1,139       1,257       1,160       1,273  

International

       

Net sales

    1,285       1,313       1,276       1,377  

Organic Net Sales(a)

    1,327       1,383       1,313       1,394  

Segment Adjusted EBITDA

    238       267       260       239  

Canada

       

Net sales

    450       560       415       457  

Organic Net Sales(a)

    376       450       418       456  

Segment Adjusted EBITDA

    121       143       107       116  
                                                                                           

(a)  This is a non-GAAP financial measure. See the Non-GAAP Financial Measures section for more information.

 

2


Non-GAAP Financial Measures

The non-GAAP financial measures we provide in this report should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. GAAP.

To supplement the consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Organic Net Sales, Adjusted EBITDA, and Constant Currency Adjusted EBITDA, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable U.S. GAAP financial measures, such as net sales, net income/(loss), or other measures prescribed by U.S. GAAP, and there are limitations to using non-GAAP financial measures.

Management uses these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect our underlying operations. Management believes that presenting our non-GAAP financial measures (i.e., Organic Net Sales, Adjusted EBITDA, and Constant Currency Adjusted EBITDA) is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

Organic Net Sales is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. We calculate the impact of currency on net sales by holding exchange rates constant at the previous year’s exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous year’s results using the current year’s exchange rate. Organic Net Sales is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.

Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding integration and restructuring expenses); in addition to these adjustments, we exclude, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). We also present Adjusted EBITDA on a constant currency basis. We calculate the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous year’s exchange rate, with the exception of highly inflationary subsidiaries, for which we calculate the previous year’s results using the current year’s exchange rate. Adjusted EBITDA and Constant Currency Adjusted EBITDA are tools that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.

 

3


The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Year Ended

(dollars in millions)

(Unaudited)

 

    Net Sales     Impact of
Currency
    Acquisitions
and
Divestitures
    Organic Net
Sales
 

December 28, 2019

                                                                                           

United States

  $ 17,844     $ —       $ —       $ 17,844  

International

    5,251       (217)       51       5,417  

Canada

    1,882       (45)       227       1,700  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 24,977     $ (262)     $ 278     $ 24,961  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

December 29, 2018

       

United States

  $ 18,218     $ —       $ —       $ 18,218  

International

    5,877       243       191       5,443  

Canada

    2,173       —         441       1,732  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 26,268     $ 243     $ 632     $ 25,393  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

Year-over-year growth rates

       

United States

    (2.0)%       0.0 pp       0.0 pp       (2.0)%  

International

    (10.6)%       (7.6) pp       (2.5) pp       (0.5)%  

Canada

    (13.4)%       (2.1) pp       (9.4) pp       (1.9)%  

Kraft Heinz

    (4.9)%       (1.9) pp       (1.3) pp       (1.7)%  

 

4


The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Year Ended

(dollars in millions)

(Unaudited)

 

    Net Sales     Impact of
Currency
    Acquisitions
and
Divestitures
    Organic Net
Sales
 

December 29, 2018

                                                                                           

United States

  $ 18,218     $ —       $ —       $ 18,218  

International

    5,877       (9)       353       5,533  

Canada

    2,173       (5)       443       1,735  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 26,268     $ (14)     $ 796     $ 25,486  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

December 30, 2017

       

United States

  $ 18,324     $ —       $ —       $ 18,324  

International

    5,575       144       221       5,210  

Canada

    2,177       —         430       1,747  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 26,076     $ 144     $ 651     $ 25,281  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

Year-over-year growth rates

       

United States

    (0.6)%       0.0 pp       0.0 pp       (0.6)%  

International

    5.4%       (3.0) pp       2.2 pp       6.2%  

Canada

    (0.2)%       (0.3) pp       0.7 pp       (0.6)%  

Kraft Heinz

    0.7%       (0.6) pp       0.5 pp       0.8%  

 

5


The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Net Sales     Impact of
Currency
    Acquisitions
and
Divestitures
    Organic Net
Sales
 

March 30, 2019

                                                                                           

United States

  $ 4,224     $ —       $ —       $ 4,224  

International

    1,285       (93)       51       1,327  

Canada

    450       (21)       95       376  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 5,959     $ (114)     $ 146     $ 5,927  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

March 31, 2018

       

United States

  $ 4,387     $ —       $ —       $ 4,387  

International

    1,433       39       68       1,326  

Canada

    484       —         93       391  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,304     $ 39     $ 161     $ 6,104  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

Year-over-year growth rates

       

United States

    (3.7)%       0.0 pp       0.0 pp       (3.7)%  

International

    (10.4)%       (9.1) pp       (1.3) pp       —  %  

Canada

    (7.0)%       (4.5) pp       1.3 pp       (3.8)%  

Kraft Heinz

    (5.5)%       (2.4) pp       (0.2) pp       (2.9)%  

 

6


The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Net Sales     Impact of
Currency
    Acquisitions
and
Divestitures
    Organic Net
Sales
 

June 29, 2019

                                                                                           

United States

  $ 4,533     $ —       $ —       $ 4,533  

International

    1,313       (70)       —         1,383  

Canada

    560       (21)       131       450  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,406     $ (91)     $ 131     $ 6,366  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

June 30, 2018

       

United States

  $ 4,538     $ —       $ —       $ 4,538  

International

    1,588       101       74       1,413  

Canada

    564       —         111       453  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,690     $ 101     $ 185     $ 6,404  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

Year-over-year growth rates

       

United States

    (0.1)%       0.0 pp       0.0 pp       (0.1)%  

International

    (17.2)%       (10.3) pp       (4.9) pp       (2.0)%  

Canada

    (0.7)%       (3.6) pp       3.8 pp       (0.9)%  

Kraft Heinz

    (4.2)%       (2.8) pp       (0.8) pp       (0.6)%  

 

7


The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Net Sales     Impact of
Currency
    Acquisitions
and
Divestitures
    Organic Net
Sales
 

September 28, 2019

                                                                                           

United States

  $ 4,385     $ —       $ —       $ 4,385  

International

    1,276       (37)       —         1,313  

Canada

    415       (4)       1       418  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,076     $ (41)     $ 1     $ 6,116  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

September 29, 2018

       

United States

  $ 4,457     $ —       $ —       $ 4,457  

International

    1,401       71       23       1,307  

Canada

    525       —         104       421  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,383     $ 71     $ 127     $ 6,185  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

Year-over-year growth rates

       

United States

    (1.6)%       0.0 pp       0.0 pp       (1.6)%  

International

    (8.9)%       (7.6) pp       (1.8) pp       0.5%  

Canada

    (21.1)%       (0.8) pp       (19.8) pp       (0.5)%  

Kraft Heinz

    (4.8)%       (1.7) pp       (2.0) pp       (1.1)%  

 

8


The Kraft Heinz Company

Reconciliation of Net Sales to Organic Net Sales

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Net Sales     Impact of
Currency
    Acquisitions
and
Divestitures
    Organic Net
Sales
 

December 28, 2019

                                                                                           

United States

  $ 4,702     $ —       $ —       $ 4,702  

International

    1,377       (17)       —         1,394  

Canada

    457       1       —         456  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,536     $ (16)     $ —       $ 6,552  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

December 29, 2018

       

United States

  $ 4,836     $ —       $ —       $ 4,836  

International

    1,455       32       26       1,397  

Canada

    600       —         133       467  
 

 

 

   

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,891     $ 32     $ 159     $ 6,700  
 

 

 

   

 

 

   

 

 

   

 

 

 
       

Year-over-year growth rates

       

United States

    (2.8)%       0.0 pp       0.0 pp       (2.8)%  

International

    (5.4)%       (3.3) pp       (1.8) pp       (0.3)%  

Canada

    (23.8)%       0.1 pp       (21.4) pp       (2.5)%  

Kraft Heinz

    (5.1)%       (0.6) pp       (2.3) pp       (2.2)%  

 

9


The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

For the Year Ended

(dollars in millions)

(Unaudited)

 

    December 28,
2019
    December 29,
2018
    December 30,
2017
 

Net income/(loss)

  $ 1,933     $ (10,254)     $ 10,932  

Interest expense

    1,361       1,284       1,234  

Other expense/(income)

    (952)       (168)       (627)  

Provision for/(benefit from) income taxes

    728       (1,067)       (5,482)  
 

 

 

   

 

 

   

 

 

 

Operating income/(loss)

    3,070       (10,205)       6,057  

Depreciation and amortization (excluding integration and restructuring expenses)

    985       919       907  

Integration and restructuring expenses

    102       297       583  

Deal costs

    19       23       —    

Unrealized losses/(gains) on commodity hedges

    (57)       21       19  

Impairment losses

    1,899       15,936       49  

Equity award compensation expense (excluding integration and restructuring expenses)

    46       33       49  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 6,064     $ 7,024     $ 7,664  
 

 

 

   

 

 

   

 

 

 
                                                                    

 

10


The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    March 30,
2019
    June 29,
2019
    September 28,
2019
    December 28,
2019
 

Net income/(loss)

  $ 404     $ 448     $ 898     $ 183  

Interest expense

    321       316       398       326  

Other expense/(income)

    (380)       (133)       (380)       (59)  

Provision for/(benefit from) income taxes

    217       103       264       144  
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/(loss)

    562       734       1,180       594  

Depreciation and amortization (excluding integration and restructuring expenses)

    234       253       243       255  

Integration and restructuring expenses

    27       14       15       46  

Deal costs

    8       5       6       —    

Unrealized losses/(gains) on commodity hedges

    (29)       (10)       9       (27)  

Impairment losses

    620       598       5       676  

Equity award compensation expense (excluding integration and restructuring expenses)

    9       6       11       20  
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 1,431     $ 1,600     $ 1,469     $ 1,564  
 

 

 

   

 

 

   

 

 

   

 

 

 
                                                                                           

 

11


The Kraft Heinz Company

Reconciliation of Net Income/(Loss) to Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    March 31,
2018
    June 30,
2018
    September 29,
2018
    December 29,
2018
 

Net income/(loss)

  $ 1,003     $ 753     $ 618     $ (12,628)  

Interest expense

    317       316       326       325  

Other expense/(income)

    (90)       (20)       (71)       13  

Provision for/(benefit from) income taxes

    270       308       201       (1,846)  
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/(loss)

    1,500       1,357       1,074       (14,136)  

Depreciation and amortization (excluding integration and restructuring expenses)

    199       235       245       240  

Integration and restructuring expenses

    90       93       32       82  

Deal costs

    9       7       3       4  

Unrealized losses/(gains) on commodity hedges

    2       3       6       10  

Impairment losses

    —         234       217       15,485  

Equity award compensation expense (excluding integration and restructuring expenses)

    7       20       17       (11)  
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 1,807     $ 1,949     $ 1,594     $ 1,674  
 

 

 

   

 

 

   

 

 

   

 

 

 
                                                                                           

 

12


The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Year Ended

(dollars in millions)

(Unaudited)

 

    Adjusted EBITDA     Impact of Currency     Constant Currency
Adjusted EBITDA
 

December 28, 2019

     

United States

  $ 4,829     $ —       $ 4,829  

International

    1,004       (38)       1,042  

Canada

    487       (12)       499  

General corporate expenses

    (256)       4       (260)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 6,064     $ (46)     $ 6,110  
 

 

 

   

 

 

   

 

 

 
     

December 29, 2018

     

United States

  $ 5,242     $ —       $ 5,242  

International

    1,335       170       1,165  

Canada

    608       —         608  

General corporate expenses

    (161)       —         (161)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 7,024     $ 170     $ 6,854  
 

 

 

   

 

 

   

 

 

 
     

Year-over-year growth rates

     

United States

    (7.9)%       0.0 pp       (7.9)%  

International

    (24.8)%       (14.3) pp       (10.5)%  

Canada

    (19.9)%       (1.9) pp       (18.0)%  

General corporate expenses

    58.6%       (2.5) pp       61.1%  

Kraft Heinz

    (13.7)%       (2.8) pp       (10.9)%  
                                                                    

 

13


The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Year Ended

(dollars in millions)

(Unaudited)

 

    Adjusted EBITDA     Impact of Currency     Constant Currency
Adjusted EBITDA
 

December 29, 2018

                                                                    

United States

  $ 5,242     $ —       $ 5,242  

International

    1,335       15       1,320  

Canada

    608       (2)       610  

General corporate expenses

    (161)       (2)       (159)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 7,024     $ 11     $ 7,013  
 

 

 

   

 

 

   

 

 

 
     

December 30, 2017

     

United States

  $ 5,898     $ —       $ 5,898  

International

    1,238       56       1,182  

Canada

    636       —         636  

General corporate expenses

    (108)       —         (108)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 7,664     $ 56     $ 7,608  
 

 

 

   

 

 

   

 

 

 
     

Year-over-year growth rates

     

United States

    (11.1)%       0.0 pp       (11.1)%  

International

    7.9%       (3.8) pp       11.7%  

Canada

    (4.4)%       (0.3) pp       (4.1)%  

General corporate expenses

    48.6%       1.9 pp       46.7%  

Kraft Heinz

    (8.3)%       (0.5) pp       (7.8)%  

 

14


The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Adjusted EBITDA     Impact of Currency     Constant Currency
Adjusted EBITDA
 

March 30, 2019

                                                                    

United States

  $ 1,139     $ —       $ 1,139  

International

    238       (17)       255  

Canada

    121       (6)       127  

General corporate expenses

    (67)       2       (69)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,431     $ (21)     $ 1,452  
 

 

 

   

 

 

   

 

 

 
     

March 31, 2018

     

United States

  $ 1,396     $ —       $ 1,396  

International

    322       25       297  

Canada

    134       —         134  

General corporate expenses

    (45)       —         (45)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,807     $ 25     $ 1,782  
 

 

 

   

 

 

   

 

 

 
     

Year-over-year growth rates

     

United States

    (18.4)%       0.0 pp       (18.4)%  

International

    (25.9)%       (11.6) pp       (14.3)%  

Canada

    (10.3)%       (4.3) pp       (6.0)%  

General corporate expenses

    48.2%       (2.5) pp       50.7%  

Kraft Heinz

    (20.8)%       (2.3) pp       (18.5)%  

 

15


The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Adjusted EBITDA     Impact of Currency     Constant Currency
Adjusted EBITDA
 

June 29, 2019

                                                                    

United States

  $ 1,257     $ —       $ 1,257  

International

    267       (14)       281  

Canada

    143       (5)       148  

General corporate expenses

    (67)       1       (68)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,600     $ (18)     $ 1,618  
 

 

 

   

 

 

   

 

 

 
     

June 30, 2018

     

United States

  $ 1,408     $ —       $ 1,408  

International

    412       76       336  

Canada

    173       —         173  

General corporate expenses

    (44)       —         (44)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,949     $ 76     $ 1,873  
 

 

 

   

 

 

   

 

 

 
     

Year-over-year growth rates

     

United States

    (10.7)%       0.0 pp       (10.7)%  

International

    (35.3)%       (18.8) pp       (16.5)%  

Canada

    (17.0)%       (2.8) pp       (14.2)%  

General corporate expenses

    51.9%       (2.7) pp       54.6%  

Kraft Heinz

    (17.9)%       (4.3) pp       (13.6)%  

 

16


The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Adjusted EBITDA     Impact of Currency     Constant Currency
Adjusted EBITDA
 

September 28, 2019

                                                                    

United States

  $ 1,160     $ —       $ 1,160  

International

    260       (8)       268  

Canada

    107       (1)       108  

General corporate expenses

    (58)       1       (59)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,469     $ (8)     $ 1,477  
 

 

 

   

 

 

   

 

 

 
     

September 29, 2018

     

United States

  $ 1,182     $ —       $ 1,182  

International

    307       46       261  

Canada

    144       —         144  

General corporate expenses

    (39)       —         (39)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,594     $ 46     $ 1,548  
 

 

 

   

 

 

   

 

 

 
     

Year-over-year growth rates

     

United States

    (1.8)%       0.0 pp       (1.8)%  

International

    (15.4)%       (18.0) pp       2.6%  

Canada

    (25.7)%       (0.8) pp       (24.9)%  

General corporate expenses

    49.8%       (2.8) pp       52.6%  

Kraft Heinz

    (7.8)%       (3.2) pp       (4.6)%  

 

17


The Kraft Heinz Company

Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA

For the Three Months Ended

(dollars in millions)

(Unaudited)

 

    Adjusted EBITDA     Impact of Currency     Constant Currency
Adjusted EBITDA
 

December 28, 2019

                                                                    

United States

  $ 1,273     $ —       $ 1,273  

International

    239       1       238  

Canada

    116       —         116  

General corporate expenses

    (64)       —         (64)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,564     $ 1     $ 1,563  
 

 

 

   

 

 

   

 

 

 
     

December 29, 2018

     

United States

  $ 1,256     $ —       $ 1,256  

International

    294       23       271  

Canada

    157       —         157  

General corporate expenses

    (33)       —         (33)  
 

 

 

   

 

 

   

 

 

 

Kraft Heinz

  $ 1,674     $ 23     $ 1,651  
 

 

 

   

 

 

   

 

 

 
     

Year-over-year growth rates

     

United States

    1.3%       0.0 pp       1.3%  

International

    (18.6)%       (7.0) pp       (11.6)%  

Canada

    (26.1)%       0.2 pp       (26.3)%  

General corporate expenses

    92.2%       (2.2) pp       94.4%  

Kraft Heinz

    (6.6)%       (1.3) pp       (5.3)%  

 

18