Warren Buffett’s company reported a significant drop in profit due to a $3.76 billion writedown on its Kraft Heinz stake. Despite this, Berkshire Hathaway still earned $12.37 billion in the second quarter. The conglomerate’s operating earnings remain strong at $11.16 billion.

Berkshire owns over 27% of Kraft Heinz and believes in its brands’ long-term success. However, a potential writedown may come as the company explores strategic options for its portfolio. Changing consumer tastes have impacted Kraft Heinz since Berkshire helped acquire it in 2015.

Buffett plans to step down as CEO at the end of the year, with Vice Chairman Greg Abel taking over operations. Berkshire shareholders may be disappointed as the company didn’t repurchase shares this quarter, despite the stock price drop. BNSF, a Berkshire holding, saw a 19% jump in operating profit.

Berkshire’s insurance business showed signs of pulling back from property insurance writing. Despite growth in areas like Geico, Berkshire lagged behind competitors like Progressive and Allstate. The conglomerate’s underwriting operating profit dipped slightly to just under $2 billion in the quarter.

Read more at Yahoo Finance: Profits drop at Warren Buffett’s Berkshire Hathaway as it writes down its Kraft Heinz investment