Global food business, Kraft Heinz, has reported a statutory loss for FY25 and halted plans to split the business while it focuses on returning the company to profitable growth. CEO Steve Cahillane also announced an $860 million (US$600m) investment plan.
“My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan,” Cahillane said.
The decision effectively redirects capital and management focus back into core brand and portfolio execution.
The investment plan will be incremental across marketing, sales and R&D, alongside product superiority initiatives and selective pricing actions. The company said the balance sheet and free cash flow generation provide flexibility to fund the program.
The statutory loss came after booking $9.3 billion in non-cash impairment charges.
For the full year ended 27 December 2025, net sales fell 3.5 per cent to US$24.9 billion, with Organic Net Sales down 3.4 per cent. Price contributed 0.7 percentage points of growth, largely reflecting increases to offset higher input costs, particularly in coffee, but volume/mix declined 4.1 percentage points, driven by weaker performance in cold cuts, coffee, frozen meals, snacks, certain condiments and bacon.
Operating income swung to a loss of US$4.7 billion, compared to income of US$1.7 billion in the prior year, primarily due to the impairment charges. Adjusted Operating Income declined 11.5 per cent to US$4.7 billion, as commodity and manufacturing cost inflation outpaced productivity initiatives and pricing actions.
Diluted Earnings Per Share (EPS) was a loss of US$4.93, compared to earnings of US$2.26 in FY24. On an adjusted basis, EPS declined 15 per cent to US$2.60.
Despite the earnings pressure, operating cash flow improved 6.6 per cent to US$4.5 billion, supported by working capital improvements and lower tax payments. Free Cash Flow increased 15.9 per cent to US$3.7 billion. The company returned $2.3 billion to shareholders through dividends and share repurchases during the year.
Fourth quarter net sales fell 3.4 per cent to $6.4 billion, with Organic Net Sales down 4.2 per cent. Adjusted Operating Income declined 15.9 per cent to $1.2 billion, while Adjusted EPS fell 20.2 per cent to $0.67.
Chair John Cahill said the board supports the shift in focus.
“We are confident that our decision to pause the work related to the separation and fully focusing our resources in service of growth is the right move at this time.”
The results underscore the scale of the turnaround task facing Kraft Heinz as it seeks to stabilise volumes, rebuild brand momentum and restore margin in a high-cost, price-sensitive consumer environment.
