From Yahoo Finance: 2025-04-29 13:02:00

Kraft Heinz has revised its 2025 outlook due to potential input-cost inflation from tariffs. The company reported negative results in Q1, with a significant cut in adjusted operating income and organic sales. CEO Carlos Abrams-Rivera cited market tensions and adjusted the outlook to include higher inflation and tariffs.

The company anticipates adjusted EPS of $2.51 to $2.67, down from $2.63 to $2.74, reflecting increased costs from inflation and tariffs. CFO Andre Maciel noted a wider range due to economic volatility and policy changes. The adjusted gross margin is expected to decrease by 25 to 75 basis points.

To offset future price increases, Kraft Heinz plans to increase media spending and focus on product innovation. The brand growth system, aimed at driving brand superiority through strategic investments, will be expanded to cover 40% of product sales. The company is prioritizing resources to improve key brands like Lunchables and Capri Sun.



Read more at Yahoo Finance: Kraft Heinz factors tariff-linked inflation uncertainty into outlook downgrades