Kraft Heinz — Financial Results
Massive Impairment Charges Dwarf Operating Results, Producing a $5.8 Billion Net Loss
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Goodwill impairment | $6.7B | $1.6B | +$5.1B |
| Intangible asset impairment | $2.6B | $2.0B | +$0.6B |
| Net income/(loss) | -$5.8B | +$2.7B | -$8.6B |
| Diluted EPS | -$4.93 | +$2.26 | -$7.19 |
Kraft Heinz recorded $9.3 billion in total impairment losses (write-downs acknowledging that the carrying value of brand names and goodwill on its books exceeds what they are actually worth) in 2025, up sharply from $3.7 billion in 2024. These are non-cash charges, meaning no money left the door, but they signal that the long-term value of the company's brands is being revised downward significantly. The Kraft brand alone carries $8.5 billion on the books and had less than 2% cushion before its next potential write-down.
Underlying Profitability Is Also Declining, Not Just the Headline Number
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Adjusted Operating Income | $4.75B | $5.36B | -11.5% |
| Adjusted EPS | $2.60 | $3.06 | -15.0% |
Stripping out the impairment charges and other one-time items, the business still earned meaningfully less than the prior year. Adjusted Operating Income fell 11.5%, driven by commodity and manufacturing cost inflation outpacing pricing gains, alongside higher advertising and R&D spending. This matters because it shows the underlying operational pressure is real, not just an accounting adjustment.
North America, the Core Business, Is Losing Volume
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| North America net sales | $18.6B | $19.5B | -4.9% |
| Organic volume/mix | -5.0pp | — | — |
| Segment Adjusted Operating Income | $4.39B | $5.11B | -14.1% |
North America generates roughly 75% of total revenue, and consumers are buying less across a range of categories including cold cuts, coffee, frozen snacks, and desserts. The company raised prices slightly (0.3 pp), but that was not enough to offset the volume decline. Profitability in the segment dropped 14.1%, reflecting the combination of fewer units sold and higher input costs.
Emerging Markets Are a Rare Bright Spot
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Emerging Markets organic net sales | $2.80B | $2.68B | +4.6% |
| Segment Adjusted Operating Income | $341M | $321M | +6.2% |
While North America and International Developed Markets both lost organic volume, Emerging Markets grew organic sales 4.6% and lifted segment profit 6.2%. Growth was led by the Taste Elevation platform in Brazil and China. This is a small part of the overall business but one of the few areas moving in the right direction.
Cash Generation Remains Solid Despite Losses
Despite the headline net loss, Kraft Heinz generated $4.5 billion in operating cash flow in 2025, up from $4.2 billion in 2024. This is because the impairment charges are non-cash and working capital improved, partly through inventory reduction. The company paid $1.9 billion in dividends and maintained a $4.0 billion undrawn revolving credit facility, suggesting near-term liquidity is not an immediate concern. However, long-term debt rose to $21.2 billion, with $1.9 billion due in mid-2026.
A Planned Company Breakup Was Announced, Then Paused
In September 2025, Kraft Heinz announced plans to split into two separate publicly traded companies via a tax-free spin-off. However, in February 2026 the board paused that work. The filing does not explain the reason for the pause. The company incurred $60 million in separation costs before the pause, and the uncertainty around the company's strategic direction remains an open question for investors.