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Kraft Heinz (KHC) FY2025 results: revenue $24.9 billion, down 3.5% on the year

Kraft Heinz Co. (KHC) reported revenue of $24.9 billion for fiscal 2025, the year ended 27 December 2025, down 3.5% on the year before. Net income was -$5.8 billion, and diluted earnings per share $-4.93. The figures are the company's own, from the 10-K it filed with the SEC on 12 February 2026.

Revenue
$24.9 billion
-3.5% on the year
FY2018FY2025
Operating margin
-18.7%
6.5% a year earlier
FY2018FY2025
Net income
-$5.8 billion
FY2018FY2025
Diluted EPS
-$4.93
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 9 new.

  • Full-year net sales declined 3.5 percent: Full-year net sales were $24.9 billion, down 3.5 percent, with an unfavorable 0.1 point currency effect; organic net sales fell 3.4 percent.
  • Impairments produced full-year operating loss: The full-year operating loss of $4.7 billion reflects $9.3 billion of non-cash impairment losses, $5.6 billion more than the prior year.
  • Adjusted operating income down 11.5 percent: Full-year adjusted operating income was $4.7 billion, down 11.5 percent. Adjusted EPS was $2.60, down 15.0 percent, as lower operating income, higher taxes and higher interest more than offset fewer shares.
  • Cost inflation outpaced efficiency gains: Commodity and manufacturing costs rose faster than efficiency initiatives; lower volume/mix, higher advertising, higher R&D and unfavorable currency were also cited for the full year.
  • Free cash flow rose 15.9 percent: Operating cash flow was $4.5 billion, up 6.6 percent, and free cash flow was $3.7 billion, up 15.9 percent, helped by lower capital expenditures.
Read the Q4 FY2025 earnings call summary

From this 10-K

Kraft Heinz makes packaged food and drink. The company was formed on 2 July 2015 when Kraft Foods Group merged into a subsidiary of H.J. Heinz Holding Corporation, which was then renamed The Kraft Heinz Company. Its portfolio is organised into eight consumer-driven product platforms. It operates four operating segments, North America, Europe and Pacific Developed Markets, West and East Emerging Markets and Asia Emerging Markets, and reports on two of them, North America and International Developed Markets, with the two emerging-market segments combined and disclosed as Emerging Markets. The fiscal year is 52 or 53 weeks and ends on the last Saturday in December.

Kraft Heinz Co., the 10-K for 2025

Kraft Heinz makes packaged food and drink. The company was formed on 2 July 2015 when Kraft Foods Group merged into a subsidiary of H.J. Heinz Holding Corporation, which was then renamed The Kraft Heinz Company. Its portfolio is organised into eight consumer-driven product platforms. It operates four operating segments, North America, Europe and Pacific Developed Markets, West and East Emerging Markets and Asia Emerging Markets, and reports on two of them, North America and International Developed Markets, with the two emerging-market segments combined and disclosed as Emerging Markets. The fiscal year is 52 or 53 weeks and ends on the last Saturday in December.

The eight platforms

Taste Elevation is condiments, sauces, dressings and spreads, and at 45% of consolidated net sales in 2025 it is the largest. Easy Ready Meals, meaning Kraft Mac & Cheese varieties, frozen potato products and other frozen meals, was 17%. Hydration, which is ready-to-drink beverages, powdered beverages and liquid concentrates, was 8%, as were Meats, meaning cold cuts, bacon and hot dogs. Cheese, American sliced and recipe cheeses, was 7%. Substantial Snacking, which holds Lunchables meal kits, frozen snacks and pickles, was 6%. Desserts, dry packaged and refrigerated ready-to-eat desserts and toppings, was 5%, and Coffee, covering mainstream coffee, pods and premium coffee, was 3%. Each platform carries a role the company calls Accelerate, Protect or Balance, which guides where money is put, and the role can differ by segment and market.

The brands

In North America the trademarks the filing names are Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell House, Kool-Aid and Jell-O. In International Developed Markets they are Heinz, Golden Circle, Plasmon and Wattie's. In Emerging Markets they are Heinz, Master, ABC, Quero, Kraft and Pudliszki. Capri Sun is used under licence from a third party for sale in North America. Licences run the other way too: an affiliate of Groupe Lactalis holds perpetual licences for the Kraft and Velveeta brands for certain cheese products. The infant and specialty food business in Italy, which carried the rights to the Plasmon brand, was divested on 31 December 2025.

The separation, paused

On 2 September 2025 the company announced its intention to split into two independent publicly traded companies through a tax-free spin-off. On 11 February 2026 it announced that the Board had decided to pause the work. If it resumes, the filing states that the separation would still require final Board approval, favourable tax opinions from the company's US tax advisors and effective filings with the Securities and Exchange Commission.

Who buys it

Walmart was approximately 21% of net sales in 2025 and in each of the two years before, buying for both reportable segments. In 2025 the five largest customers in North America were approximately 46% of that segment's net sales, the five largest in International Developed Markets approximately 27%, and the five largest in Emerging Markets approximately 15%.

Inputs and people

The commodities bought in quantity are dairy products, meat products, sugar and other sweeteners, coffee, tomato products, soybean and vegetable oils, eggs, other fruits and vegetables, and wheat and processed grains, plus plastics, resin, cardboard, glass, paper and metal for packaging, and electricity, diesel and natural gas for making and moving the goods. Sourcing is centralised for commodities used across categories, while some brands buy separately what only they need, from producers ranging from large international suppliers to small local sellers. A range of hedging techniques is used to limit the impact of price fluctuations on many of the principal raw materials, but the company does not fully hedge against changes in commodity prices. The filing records higher inflation in supply chain costs in 2025 than the year before, attributed in part to tariff and trade policy actions by the United States and foreign governments. There were approximately 35,000 employees in 40 countries at 27 December 2025, approximately 16,000 of them in the United States, with approximately sixty-two percent working in production, and the company is party to numerous collective bargaining agreements.

From Kraft Heinz's annual report on Form 10-K for the year ended 27 December 2025. The filing

Written from the 10-K filed 12 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue24,94225,84626,640-3.5%
Cost of revenue16,63316,87817,714-1.5%
Gross profit8,3098,9688,926-7.3%
Gross margin33.3%34.7%33.5%
Research and development167150147+11.3%
Selling, general and administrative12,9787,2854,354+78.1%
Operating income-4,6691,6834,572
Operating margin-18.7%6.5%17.2%
Interest expense947912912+3.8%
Pre-tax income-5,4458563,633
Income tax403-1,890787
Effective tax raten/a-220.8%21.7%
Net income-5,8462,7442,855
Net margin-23.4%10.6%10.7%
Diluted EPS-$4.93$2.26$2.31
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow4,4624,1843,976+6.6%
Capital expenditure8011,0241,013-21.8%
Free cash flow3,6613,1602,963+15.9%
Free cash flow margin14.7%12.2%11.1%
Cash from investing-1,833-1,023-916
Cash from financing-1,251-3,008-2,678
Depreciation and amortisation968948961+2.1%
Share-based compensation95.0109141-12.8%
Buybacks436988455-55.9%
Dividends paid1,8981,9311,965-1.7%
Dividend per share$1.60$1.60$1.600.0%
Diluted shares, weighted1,187m1,215m1,235m-2.3%
Shares outstanding at period end1,184m1,195m1,218m-0.9%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity41,66449,18549,526-15.3%
Non-controlling interest113134162-15.7%
Redeemable equity12.06.034.0+100.0%
Debt21,21919,86920,032+6.8%
Operating lease liabilities427464501-8.0%
Finance lease liabilities130126118+3.2%
Other liabilities18,22118,50319,966-1.5%
Total liabilities and equity81,78688,28790,339-7.4%
Goodwill22,17928,67330,459-22.6%
Intangible assets37,52940,09942,448-6.4%
Investments1,0600.0n/a
Cash and equivalents2,6151,3341,400+96.0%
Receivables2,2542,1472,112+5.0%
Inventory3,1673,3763,614-6.2%
Other assets12,98212,65810,306+2.6%
Total assets81,78688,28790,339-7.4%

10-K for the year ended 27 December 2025, filed 12 February 2026: the filing.