Kraft Heinz Q2 2021 Prepared Remarks Earnings Report

Kraft Heinz EPS Results

• Actual EPS: $0.78
• Consensus EPS: $0.72
• Beat/Miss: Beat by +$0.06
• One Year Ago EPS: $0.80

Kraft Heinz Revenue Results

• Actual Revenue: $6.62 billion
• Expected Revenue: $6.55 billion
• Beat/Miss: Beat by +$65.74 million
• YoY Revenue Growth: -0.50%

Kraft Heinz Announcement Details

• Quarter: Q2 2021 Prepared Remarks
• Date: 8/4/2021
• Time: Before Market Opens
• Conference Call Date: Tuesday, August 3, 2021
• Conference Call Time: 8:00PM ET

The Kraft Heinz (NASDAQ:KHC) (NASDAQ: KHC) is a global food and beverage company formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Company. The combination created one of the largest packaged-food companies in the world, built around well-known consumer brands. The merger was supported by major investors and established a multi-national platform for branded food products.

Kraft Heinz develops, manufactures, markets and distributes a broad portfolio of branded packaged foods and condiments. Its product assortment includes iconic household names in categories such as condiments and sauces, cheese and dairy, meals and sides, meats, coffee and other shelf-stable and refrigerated items. The company sells products through retail, foodservice and other channels, and operates across North America, Europe, Latin America and parts of the Asia-Pacific region, serving consumers in many international markets.

Kraft Heinz is headquartered in Chicago with historic operational roots in Pittsburgh and maintains global manufacturing, research and development, and sales operations to support its portfolio. The company emphasizes brand management, scale manufacturing and global distribution as core elements of its business model. Miguel Patricio has served as chief executive officer since 2019, leading efforts to refresh the company’s brand portfolio and improve growth execution while leveraging the company’s extensive marketing and supply-chain capabilities.

Kraft Heinz Q2 2021 Prepared Remarks Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Organic net sales grew 5% versus Q2 2019 and constant currency adjusted EBITDA rose 5.5% over the same period, reflecting strong performance relative to pre-pandemic levels.
• Positive Sentiment: On track to deliver $400 million of gross efficiencies in 2021 and capture $2 billion in savings over five years, while managing mid-single-digit inflation through targeted pricing and revenue management initiatives.
• Positive Sentiment: Marketing investments are up double digits versus H1 2019, with digital channels now accounting for roughly 70% of spend and creative campaigns earning six Cannes Lions awards.
• Positive Sentiment: International taste elevation platform net sales rose 16% versus Q2 2019, as 88% of countries held or gained share and emerging markets likewise delivered 16% growth driven by distribution expansion.
• Negative Sentiment: The divestiture of the nuts business will reduce annualized net sales by about $1.1 billion and adjusted EBITDA by roughly $240 million, causing approximately $0.06 of EPS dilution in 2021–22.

Presentation

[Chris Jakubik, Head of Global Investor Relations at The Kraft Heinz Company]

Hello, this is Chris Jakubik, Head of Global Investor Relations at The Kraft Heinz Company, and welcome to our second quarter 2021 business update. During our review, we will make some forward-looking statements that are based on how we see things today. Actual results may differ due to risks and uncertainties, and these are discussed in our earnings release and our filings with the SEC. We will also discuss some non-GAAP financial measures during these remarks.

[Chris Jakubik, Head of Global Investor Relations at The Kraft Heinz Company]

These non-GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. You can find the GAAP to non-GAAP reconciliations within our earnings release and the supplemental materials posted at ir.kraftheinzcompany.com. Today, our Chief Executive Officer, Miguel Patricio, will provide an update on our overall business performance. Carlos Abrams-Rivera will review business performance in the U.S. segment.

[Chris Jakubik, Head of Global Investor Relations at The Kraft Heinz Company]

Rafa Oliveira will discuss business performance in our international segment, and then Paulo Basilio, our Global Chief Financial Officer, will provide an overall financial review and our near-term outlook. We have also scheduled a separate live question and answer session with analysts. You can access our earnings release, supplemental materials, and audio of our question and answer session at ir.kraftheinzcompany.com. A replay of the question and answer session will be available following the event through the same website. With that, I will turn it over to Miguel.

[Miguel Patricio, CEO at The Kraft Heinz Company]

Thank you, Chris. With the first half of 2021 now behind us, not only we are gaining more visibility into our post-pandemic world, we are in a better position to assess our fundamental progress as a company since the pandemic took hold. I would like to start our review with some higher-level observations on where I believe we are as a company and how we are preparing ourselves for the future. First and foremost, I'm very happy and very proud that our Kraft Heinz team is displaying and building the power of scale with agility. The starts and pauses to the reopening of economies around the world and challenges such as inflation and supply chain disruptions that are coming with it are a difficult aspect of our current reality.

[Miguel Patricio, CEO at The Kraft Heinz Company]

Despite this, we believe our Q2 results serve as a good indication that we are in fact driving sustainable gains with our consumers and in our P&L versus pre-pandemic levels. We are driving our transformation agenda forward, fueled by investments in our people, brands, and capabilities, all while driving efficiencies and maintaining industry-leading profitability. We continue to strengthen our portfolio, improve our financial flexibility, and position ourselves to take creative actions to accelerate our transformation. From a financial perspective, we have talked about 2019 being an important measuring stick for our progress against our strategy and transformation, but also from a pre versus post-pandemic world. In that context, we see resilient growth on both our top and bottom lines. In the second quarter, we've maintained the lion's share of extraordinary gains we had in 2020.

[Miguel Patricio, CEO at The Kraft Heinz Company]

As a result, organic net sales grew 5% versus the same period in 2019. Our bottom line also remains strong, with constant currency-adjusted EBITDA up 5.5% versus Q2 2019, despite a number of headwinds. Based on our performance to date, we expect to deliver a stronger 2021 than we projected when we provided our initial outlook in February. Even more encouraging, our growth is coming from areas where we have made investments consistent with the new strategy we launched last year. We are realizing a strong mix improvement in our higher margin growth platforms, especially in our Global Taste Elevation Platform. We are capturing new business in emerging markets where we have significant white space opportunities. Our progress in these markets is accelerating, and their contributions to the total company continues to grow.

[Miguel Patricio, CEO at The Kraft Heinz Company]

By channel, I would also note that our retail business has remained well above pre-pandemic levels, and our food service business is showing a relatively quick rebound as we outperform the broader channel in the U.S. and many other markets where we operate. While our strategic investments are beginning to drive our results, it's still early in our transformation, which makes us optimistic about how our priorities and initiatives can fuel our momentum going forward.

[Miguel Patricio, CEO at The Kraft Heinz Company]

In the past, we have talked about our need and my passion for modernizing our connections with the consumers through stronger and more creative marketing. This is happening, and we have more on the way. Through the first half of the year, we have strongly increased our marketing spend versus the first half of 2019, and we remain on track with our planned increases for the rest of the year.

[Miguel Patricio, CEO at The Kraft Heinz Company]

Within this spend, we will put more dollars behind working media, digital channels, and high-performing priority brands and platforms. We are also starting to see the culture of creativity we want to build, showing through with more consumer-led, more cultural relevant campaigns. This includes external industry recognition with our teams winning six Cannes Lions awards this year while being shortlisted for 17 other awards. Our most recent initiatives are showing great agility to tap into today's culture and conversation. From the Kraft Mac & Cheese flavored ice cream you may have seen to our Olympics partnership in Canada, our teams around the world are showing their consumer obsession and delivering breakthrough creativity to modernize our iconic brands. On the other side of the ledger, we continue to be well-positioned to fund our strategic investments through efficiency gains.

[Miguel Patricio, CEO at The Kraft Heinz Company]

We will talk more in the coming months about the new ways we are building agility to unlock both further efficiencies and incremental growth. We have strong end-to-end visibilities to supply chain opportunities. We remain on track to deliver the $400 million of gross efficiencies we have planned for this year and capture our five-year target of $2 billion in savings that we have talked before. To address the three topics we are most often asked about these days, inflation, inflation, and inflation, we do not see recent inflationary pressures getting in the way of our strategic progress. Similar to industry peers, our cost pressures are somewhat greater than they were three months ago. For us, the latest uptick has mainly been driven by additional costs in resins.

[Miguel Patricio, CEO at The Kraft Heinz Company]

That said, we continue to see our 2021 gross cost inflation remaining in the mid-single digit range across our full cost basket. We have already offset the cost inflation we've seen to date, and we continue to believe the level of inflation we are seeing is manageable going forward. Why is that? First, we have been actively managing our promotional depth and frequency versus our initial plans since we began to see inflation tick up earlier this year.

[Miguel Patricio, CEO at The Kraft Heinz Company]

Second, we are protecting our dollar profitability from incremental inflation through additional revenue management initiatives, especially in the U.S., as Carlos will discuss. Third, in all markets we serve around the world, we will continue to monitor things and take further action if necessary. Taking in what I have highlighted so far from a P&L perspective, our results show our transformation is progressing.

[Miguel Patricio, CEO at The Kraft Heinz Company]

Our brand-building investments and efficiency plans will sustain our momentum, and we remain confident in our ability to maintain industry-leading profitability as we move forward. The final observation I would like to make relates to capital side of the equation. From an organic perspective, despite the delays and disruptions related to the pandemic, we are aggressively deploying capital to fuel our future growth. We are leveraging our strong cash generation and improved financial flexibility to expand capacity behind our growth platforms and in priority emerging markets.

[Miguel Patricio, CEO at The Kraft Heinz Company]

We are targeting a 30% step-up in CapEx this year versus 2019, driven by growth-oriented CapEx as well as investments to drive further efficiency gains as we move forward. We also continue to move strongly forward on an inorganic basis. Paulo will provide more details on the nuts and natural cheese divestitures, how they will strengthen our portfolio and improve our financial flexibility.

[Miguel Patricio, CEO at The Kraft Heinz Company]

I would like to highlight the other way agile portfolio management can accelerate our transformation by adding great businesses that can be quickly accretive. In June, we announced the acquisition of Assan Foods in Turkey, a business focused on taste elevation in emerging markets. While this is a relatively small acquisition, it serves as a stepping stone to accelerate our retail and food service growth across Europe, Middle East, and Africa. The point here is that we remain excited about the potential to take agile portfolio management actions, not just improve our financial flexibility, but to accelerate our long-term growth potential. With that, I will now ask Carlos and Rafa to provide the highlights of our U.S. and international segment performance.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

Thank you, Miguel. Through the first half of the year, our team has delivered strong gains versus 2019, and we're off to a relatively strong start against the extraordinary 2020, despite the ups and downs of the pandemic recovery. We are making great progress unlocking areas of profitable growth, getting closer to our consumers, strengthening our brands, reigniting relevancy, and winning in the marketplace through sharper, more proactive execution. That relentless focus is what gives us confidence that we can continue transforming our business while managing the headwinds that arise. Better that we show what we have at work than just talk about it. Earlier this year, I highlighted our plans to restore our retail activity levels versus 2020 behind key holiday windows and consumer occasions.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

As we do this, we are focusing our efforts and our dollars on these dates where we can leverage our scale and insights for differentiated consumer solutions and realize the power of our platform approach. A great example of this is our Art of the Burger program, where we are partnering with customers to create more valuable joint execution for grilling season. We brought together everything a consumer needs to make a mouth-watering artisanal burger.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

Customized out-of-aisle sets brought Heinz sauces, burger buns and patties, cheese, and even fresh products into one easy to shop destination. Online, we added Ore-Ida potatoes and other grilling favorites to help drive even greater lift for our partners. Sold more than 5 million incremental bottles of Heinz ketchup. The Art of the Burger program illustrates how we're thinking less about our categories and more about our platforms that address how consumers eat.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

We're also working across platforms to create an omni-channel breakfast experience that combines the power of six brands, from Oscar Mayer bacon to Kraft Singles, to give consumers everything they need for a delicious, fast, fresh, at-home breakfast that rivals any drive-thru. We activated this with 30 retailers and across e-commerce, and in one month, the program generated $8 million of incremental net sales and several learnings for future programs. In the months ahead, our calendar will become even more active with additional platform-based omni-channel programs. I should also note that as we restore that activity in the back half of the year, it will limit the contribution from pricing we report versus 2020. At the same time, we are confident in our ability to manage through and mitigate the incremental inflation we are experiencing, just like we stated in the past.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

In the first half of this year, we delivered positive pricing on top of meaningful 2020 gains by optimizing frequency and depth of promotion, while we simultaneously restore the key retail activations I just mentioned. We recently announced to our trade partners a combination of list price increases and promotional adjustments across a broad base of our portfolio. We have been, and will continue to, execute inflation-justified key commodity pricing.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

We're activating many other revenue management levers, such as price pack architecture, when and where appropriate. In addition to this, we continue to ramp up our equity-driven investments agenda across all three phases. First, the renovation of many of our iconic brands through product, packaging, and brand repositioning is well underway. A great example is Lunchables' new campaign, which leverages the inherent buildability of the brand and speaks directly to the empowerment today's kids and parents are seeking.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

The repositioning work is the first step in a multi-year brand renovation and is expected to help continue Lunchables' current momentum, which today is seeing double-digit net sales growth for the first time in five years. Second is how we are innovating to better meet consumer needs and behaviors. Primal Kitchen is a standout example, where consumption has tripled in the last year thanks to several better-for-you product launches, like cashew butter buffalo sauce. These efforts are being noticed as we earn a coveted Whole Foods Supplier Award as Global Winner for Outstanding Innovation. Third is the increased quantity and quality of marketing we're deploying. Total Q2 marketing was up double digits versus 2019. We're ramping up our digital efforts, which is now roughly 70% of the total spend.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

In truth, we are still at the early stages of our journey to fully leverage occasion-based insights and create new culturally relevant ways to drive stronger engagement with consumer, but our momentum is moving in a positive direction, as you can see on slide 17. We are seeing signs that several pandemic-inspired cooking and eating behaviors are sticking, even as mobility increases and restrictions lift. Today, many of our brands continue to grow household penetration as consumers gravitate towards pantry staples and ingredients and make more at-home meals, while ongoing interest in convenient options like Kraft Mac & Cheese continue to attract new buyers and drive repeat rates. Compared to 2019, nearly 2 million more households bought Kraft Heinz brands in the second quarter, boosting an already high household penetration rate, while repeat rates were up 8% this point.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

Additionally, spending per buyer and per trip both increased by roughly 10% and 3% respectively. This is resulting in better performance against the competition, with 58% of our U.S. retail business gaining share in Q2 versus 41% in Q1. Now, not on this slide is the fact that we're also gaining share outside measured channel as our food service sales growth in Q2 outpaced the industry, thanks to a renewed focus on insights, culinary trends, and distribution.

[Carlos Abrams-Rivera, President of the North America Zone at The Kraft Heinz Company]

Through the first half of the year, our U.S. team is doing three things. First, delivering strong performance versus 2019 on the top and bottom lines. Second, driving the key strategic initiatives that we believe will transform our business. Third, effectively managing through the challenges the current environment brings. All together, I am confident that we will continue to build on our scale advantage going forward. With that, I hand it over to Rafa to discuss our international segment.

[Rafa Oliveira, International Zone President at The Kraft Heinz Company]

Thank you, Carlos. In short, our international team continues to perform well and advance our growth strategy. We are driving top-line growth on top of extraordinary 2020, our very strong constant currency adjusted EBITDA performance compared to the 2019 period is giving us great head start in front of a second half that will see our investment levels ramping up. On slide 19, you can see our results continuing to prove out our strategy. Through our intense focus on being the undisputed global leader in taste elevation and aggressively pursuing emerging markets' white space. Net sales in our international taste elevation platform were up 16% in Q2 versus 2019, driven by distribution expansion, stepped up market investments, and a promising start to our 2021 innovations.

[Rafa Oliveira, International Zone President at The Kraft Heinz Company]

We gained 2 share points on top of a very strong share gains in the previous three quarters, with 88% of countries in our international segment holding or gaining share in taste elevation. Our emerging markets also continued strong growth. Q2 organic net sales were up 16% above the same period in 2019, driven primarily by distribution gains in both retail and food service as we are stepping up investments to capture white space.

[Rafa Oliveira, International Zone President at The Kraft Heinz Company]

We have talked before about the go-to-market capabilities we developed in Brazil to drive distribution gains across both retail and food service channels. Now, we are investing aggressively to systematically capture the opportunity in Russia through a combination of optimizing our merchandising network, working directly with chefs and tastemakers for front of the house menu placements, and introducing new innovations and capacity additions to support our future growth.

[Rafa Oliveira, International Zone President at The Kraft Heinz Company]

These efforts have helped increase retail distribution by 25% and food service distribution by almost 50%. This has led to strong performance in our business, growing organic net sales nearly 20% and increasing share 2.6 points versus 2019. We're excited and encouraged by our early wins, but we know as we ramp up investments, we can capture more of the enormous growth opportunities we have in our international business. With that, let me pass it off to Paulo to talk more about our global financial performance and our outlook.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

Thank you, Rafa. I'll start by saying that our performance to date reinforces our confidence that our gains relative to pre-pandemic levels are, in fact, durable. Despite recent inflationary pressures, our profitability can remain at industry leading levels. Slide 22 provides a more detailed look at our U.S. financial performance, where it is evident that we are retaining sustainable gains versus 2019. Q2 organic net sales versus 2019 were up 5.4% and constant currency adjusted EBITDA increased 9.3% versus Q2 2019. As expected, volume mix versus 2020 was negatively impacted by difficult comparisons and the McCafé exit. That said, our food service business recovery is well underway and retail consumption remains solidly ahead of 2019 levels.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

Pricing Q2 was positive for the eighth consecutive quarter, driven by several factors, including favorable timing, inflation-justified pricing, and increase in in-store activity versus a light pandemic-induced merchandising calendar in the prior year period. While pricing and cost efficiencies were enough to offset non-key commodity inflation, lower shipments, unfavorable mix, and higher year-on-year bacon costs led to a decline in constant currency adjusted EBITDA versus an extraordinary 2020. In Canada, Q2 top line performance came in largely as expected, with many of the same year-on-year drivers as U.S. On the top line, we saw higher pricing across food service and retail to help offset inflation, lower retail demand versus panic buying in the prior year period, as well as a partial rebound in food service demand.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

Despite leading on price, through the second quarter, our Canada business held or gained share in a majority of its categories versus 2019 levels. At the bottom line, lower constant currency adjusted EBITDA was due to lower volumes and unfavorable mix as positive pricing and gross cost efficiencies more than offset inflationary headwinds in the quarter. Turning to our international segment on slide 24. Organic net sales built on extraordinary 2020 growth due to pricing gains and strong emerging market growth. Relative to 2019, consumer demand remains elevated and especially strong in emerging markets. In terms of profitability, while constant currency adjusted EBITDA remains strongly ahead of 2019 levels, we saw a decline of 3.4% versus lofty 2020 levels. Here, pricing and favorable overheads were sufficient to offset inflation, but lower volume and unfavorable mix drove the decline.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

As for the total company in Q2, organic net sales and constant currency adjusted EBITDA were consistent with the outlook we provided in April and reflect the drivers we've discussed. As Miguel, Carlos, and Rafa highlighted, our results are keeping us optimistic about our ability to hold on to gains versus pre-pandemic levels, driven by a combination of retail consumption remaining stronger, longer, a long runway for our emerging markets business to grow, and the broader benefits of our strategy taking hold. Wrapping up our financials on slide 26, our earnings and cash flow performance continues to be strong. Q2 adjusted EPS has remained relatively stable versus a very strong Q2 2020, reflecting favorable interest expenses and a lower adjusted effective tax rate. More specifically, items below adjusted EBITDA have been favorable by roughly $0.06 year to date.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

For the full year, we now expect these factors to be approximately $0.12 favorable. This reflects our successful debt paydowns and our updated view for the full year adjusted effective tax rate between 19% and 21%. Finally, our year-to-date free cash flow generation remains strong, up versus 2019 levels and only somewhat below our extraordinary 2020.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

As for our outlook and path ahead, with the closure of the nuts divestiture, we expect to begin to see the impact of sharpening our focus and improving our mix through agile portfolio management show up in our numbers. We expect the annualized net sales impact from nuts to be approximately $1.1 billion and an annual adjusted EBITDA impact, including stranded overhead costs, of approximately $240 million. We expect 51% of this will fall in 2021 and 49% in the first half of 2022.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

Annualized adjusted EPS dilution is expected to be roughly $0.06. Regarding our natural cheese divestiture, we continue to expect the transaction to close in the second half of 2021, and the impacts we expect from that divestiture remain consistent with what we have previously outlined. Taken together, these divestitures serve to accelerate our strategy of sustainable and profitable growth by enhancing our growth and margin profile of the resulting portfolio, reducing our exposure to commodity volatility, further distancing our brands from private label competition, and importantly, improving our financial flexibility and firepower, including the ability to invest aggressively with confidence in our highest returning growth businesses. As we have said many times before, our intent has always been to reduce our leverage without sacrificing the speed of our turnaround or potential long-term value creation.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

As reported, in Q2, we reduced our net leverage to a post-merger low of 3.1 times, well below our 4x net debt to adjusted EBITDA target. I will note, however, that cycling past the extraordinary adjusted EBITDA benefits in 2020, as well as the upcoming impacts of the divestitures, will create some upward pressure on leverage. That said, we'll continue to retire debt opportunistically, depending on market conditions, and expect to manage our leverage consistent with an investment-grade profile going forward, which yields us significant financial and strategic flexibility.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

Turning to our expectations for the P&L for Q3, we expect another strong quarter on the top and bottom lines, considering the various headwinds we are up against. Specifically, we expect to see another quarter of mid-single-digit organic net sales growth versus 2019, driven by continued elevated retail consumption, strong emerging markets growth, and ongoing improvement in food service.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

This includes more than 1 point unfavorable impact from McCafé exit. At constant currency adjusted EBITDA, we expect a low single-digit % decline versus 2019, although this includes more than 8 points of combined headwinds from the nuts divestiture, McCafé exit, as well as more normalized incentive compensation. Versus 2020, the outlook includes roughly 3 point unfavorable impact from the nuts divestiture and reflects a combination of mix headwinds as consumption between at home and away-from-home channels finds a new equilibrium, greater inflationary pressures against more difficult pricing comparisons considering the restoration of retail activation that Carlos highlighted, and stepped up spending levels to support our transformation. For the full year 2021, while we continue to expect results to be ahead of our original strategic plan, we now expect the adjusted EBITDA we report for 2021 to be ahead of the $6.1 billion we reported in 2019.

[Paulo Basilio, Global CFO at The Kraft Heinz Company]

We expect this despite the negative impacts from the nuts and Canada cheese divestitures, business exits, and normalization of incentive compensation that have happened between then and now. That's better than we expected at the start of the year, and it reflects the fact that our underlying ongoing business is bigger, stronger, and more profitable than it was in 2019. Let me now hand it back to Miguel for some closing comments.

[Miguel Patricio, CEO at The Kraft Heinz Company]

Thank you, Paulo. As we wrap up today's prepared remarks, I hope you come away with the same beliefs I have. I'm encouraged by our results and the underlying momentum in the business. I'm energized by the progress we are making against our transformation. And I am emboldened by the strength of the portfolio and our financial flexibility. There is still much work to be done and more challenges lie ahead, but I'm confident that we will continue to become a stronger and a more agile consumer-focused leader in our industry. Thank you for your time and interest in Kraft Heinz.

Participants

Executives

• Carlos Abrams-Rivera, President of the North America Zone
• Chris Jakubik, Head of Global Investor Relations
• Miguel Patricio, CEO
• Paulo Basilio, Global CFO
• Rafa Oliveira, International Zone President