Kraft Heinz (KHC) Financials

Over the last four years, Kraft Heinz (NASDAQ: KHC) has exhibited significant fluctuations in its financial performance, highlighted by a recent sharp downturn in Q2 2025 contrasted with more stable periods in prior years. Below is a summary of key trends and notable financial metrics observed across the income statements, balance sheets, and cash flow statements.

• Q2 2025 posted a substantial consolidated net loss of $7.82 billion, a significant deterioration compared to positive net income in previous quarters.
• There was a very large impairment charge in Q2 2025 amounting to approximately $9.27 billion, severely impacting operating income and resulting in an operating loss of $7.97 billion.
• Basic and diluted earnings per share in Q2 2025 were negative $6.60 compared to positive EPS in all quarters over the prior year.
• Total operating expenses in Q2 2025 soared to over $10.15 billion from more modest levels around $1 billion in prior quarters, driven largely by impairment charges.
• Despite the net loss, cash flow from operating activities in Q2 2025 remained positive at $1.21 billion, helped by non-cash adjustments and depreciation.
• Kraft Heinz maintained significant liquidity as of Q2 2025, with $1.57 billion in cash and equivalents and nearly $1 billion in short-term investments on the balance sheet.
• Total assets remained sizable at $81.58 billion in Q2 2025, with goodwill and intangible assets dominating non-current assets valued at approximately $22.2 billion and $37.8 billion respectively.
• The company continued paying dividends quarterly at $0.40 per share throughout the periods under review.
• Debt levels remained elevated, with long-term debt around $19.3 billion and short-term debt about $1.9 billion at Q2 2025.
• The total equity decreased to $41.36 billion in Q2 2025 from nearly $50 billion in early 2024, reflecting losses and treasury stock transactions.

Summary and Outlook:

Kraft Heinz’s recent financial distress in Q2 2025 is predominantly driven by a massive impairment charge, possibly reflecting asset write-downs or restructuring efforts. This has caused a sharp swing to losses on the income statement. However, the company’s core operating cash flow remains positive, indicating underlying business cash generation potential. The balance sheet retains substantial intangible assets and liquidity, but elevated debt levels and declining equity call attention to financial leverage risks.

Investors should closely monitor upcoming quarters to assess Kraft Heinz’s recovery and ability to manage impairment-related performance hits. The company’s consistent dividend payments provide some income stability, though earnings volatility has increased significantly. Overall, cautious consideration is warranted given the recent downturn and high non-cash charges impacting reported profitability.