Kraft Heinz charts course for growth as CEO Abrams-Rivera tackles 2024 headwinds

Kraft Heinz, the global food giant known for iconic brands like Heinz and Kraft, has faced a challenging 2024. The company reported a dip in net sales and absorbed significant impairment charges, including a £1.14 billion write-down of the Oscar Mayer brand. However, Carlos Abrams-Rivera, who took the helm as CEO in January 2024, is steering the company towards a future focused on strategic growth and innovation.

Navigating a turbulent year

Despite economic uncertainties impacting consumer behaviour, Kraft Heinz demonstrated resilience. While net sales decreased by 3%, the company achieved a 120 basis point increase in gross profit margin, reaching 34.7%. Adjusted operating income also saw a 1.2% rise. This focus on profitability is a key element of Abrams-Rivera’s strategy.

Strong cash flow and shareholder focus

Kraft Heinz maintained strong cash flow, with a 5.2% increase in net cash from operating activities, reaching £3.3 billion. The company also returned £2.2 billion to shareholders through dividends and share repurchases, underscoring its commitment to delivering shareholder value.

Q4 2024: Weathering the storm

The fourth quarter presented further challenges, with net sales declining 4.1% and operating income significantly impacted by impairment losses. However, adjusted EPS showed positive growth, increasing 7.7% to £0.68.

Abrams-Rivera’s vision for the future

Looking ahead to 2025, Abrams-Rivera is optimistic. He plans to leverage Kraft Heinz’s “Brand Growth System” to revitalise iconic brands and drive product innovation. Expanding into emerging markets is another key focus, along with securing new clients in the foodservice sector.

Carlos Abrams-Rivera, Chief Executive Officer and Member of the Board of Directors

“Our focus remains on executing with excellence,” Abrams-Rivera stated, emphasizing the company’s commitment to its strategic pillars.

Key growth Initiatives:

• Innovation: Kraft Heinz will continue to invest in new product development, responding to evolving consumer needs.
• Brand Building: The company will focus on enhancing brand equity and consumer engagement.
• Emerging Markets: Expansion into high-growth emerging markets will continue.
• Foodservice Growth: Kraft Heinz aims to secure new clients within the foodservice sector.

A new era for Kraft Heinz

While acknowledging the challenges of 2024, Abrams-Rivera is confident in the company’s ability to adapt and thrive. The focus on profitability, innovation, and strategic growth initiatives positions Kraft Heinz for a stronger future under its new leadership.

Read the full press release here.