Kraft Heinz Reports First Quarter 2021 Results
-
Q1 net sales increased 3.9% and Organic
Net Sales (1) increased 2.5% - Q1 gross profit increased 18.5%
- Q1 operating income increased 41.3%, net income increased 49.0%, and diluted EPS increased 48.4%
- Adjusted EBITDA(1) increased 11.6% and Adjusted EPS(1) increased 24.1%
“Our first quarter was better than expected, with our team delivering strong results on top of exceptional growth last year,” said
|
||||||||||||||
In millions |
||||||||||||||
|
|
|
|
Organic |
||||||||||
|
|
2021 |
|
2020 |
|
% Chg vs PY |
|
YoY Growth Rate |
|
Price |
|
Volume/Mix |
||
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
4,608 |
|
$ |
4,495 |
|
2.5% |
|
2.5% |
|
1.0 pp |
|
1.5 pp |
International |
|
1,394 |
|
1,301 |
|
7.2% |
|
2.7% |
|
2.2 pp |
|
0.5 pp |
||
|
|
392 |
|
361 |
|
8.8% |
|
2.5% |
|
4.9 pp |
|
(2.4) pp |
||
|
|
$ |
6,394 |
|
$ |
6,157 |
|
3.9% |
|
2.5% |
|
1.5 pp |
|
1.0 pp |
Net Income/(Loss) and Diluted EPS |
||||||||
In millions, except per share data |
|
|
|
|
||||
|
|
For the Three Months Ended |
||||||
|
|
2021 |
|
2020 |
|
% Chg vs PY |
||
Gross profit |
|
$ |
2,201 |
|
$ |
1,858 |
|
18.5% |
Operating income/(loss) |
|
1,089 |
|
770 |
|
41.3% |
||
Net income/(loss) |
|
568 |
|
381 |
|
49.0% |
||
Net income/(loss) attributable to common shareholders |
|
563 |
|
378 |
|
48.9% |
||
Diluted EPS |
|
$ |
0.46 |
|
$ |
0.31 |
|
48.4% |
|
|
|
|
|
|
|
||
Adjusted EPS(1) |
|
0.72 |
|
0.58 |
|
24.1% |
||
Adjusted EBITDA(1) |
|
$ |
1,580 |
|
$ |
1,415 |
|
11.6% |
Q1 2021 Financial Summary
-
Net sales increased 3.9 percent versus the year-ago period to
$6.4 billion , including a favorable 1.4 percentage point impact from currency, and increased 7.3 percent versus the comparable 2019 period, including a favorable 0.5 percentage point impact from currency. OrganicNet Sales increased 2.5 percent versus the prior year period and increased 8.7 percent versus the comparable 2019 period with positive contributions from all reporting segments, and despite a negative impact from exiting the McCafé licensing agreement. Pricing was up 1.5 percentage points versus the prior year period reflecting a combination of reduced retail promotions and revenue management gains that were partially offset by unfavorable trade expense timing versus the year-ago period. Volume/mix was up 1.0 percentage points versus the year-ago period, driven by favorable changes in retail inventory levels, particularly in developed markets where retail consumption remained strong, as well as continued growth in emerging markets. This growth was partially offset by ongoing foodservice declines, the negative impact from exiting the McCafé licensing agreement, and lower retail takeaway versus the prior year period that benefited from strong, COVID-19-related consumer demand. -
Net income/(loss) of
$568 million increased 49.0 percent versus the year-ago period driven by strong gross profit growth, which included favorable changes in unrealized losses/(gains) on commodity hedges, and a lower effective tax rate that more than offset unfavorable changes in interest expense due to one-time extinguishment costs, as well as unfavorable other expense/(income) as compared to the prior year period. Net income/(loss) increased 40.6 percent versus the comparable 2019 period. Adjusted EBITDA of$1.6 billion increased 11.6 percent versus the year-ago period and 10.4 percent versus the comparable 2019 period. Excluding a favorable 1.2 percentage point impact from currency, year-over-year Adjusted EBITDA growth was driven by favorable pricing and product mix, as well as lower general corporate expenses versus the prior year period that more than offset supply chain inflation and increased spending behind strategic investments. -
Diluted EPS increased to
$0.46 , up 48.4 percent versus the prior year, driven by the net income/(loss) factors discussed above. Adjusted EPS increased to$0.72 , up 24.1 percent versus the prior year, driven by Adjusted EBITDA growth, a lower effective tax rate, and lower depreciation and amortization costs that more than offset unfavorable changes in non-cash other expense/(income) and higher non-cash equity award compensation relative to the year-ago period. -
Net cash provided by operating activities increased to
$810 million , up 281.8 percent versus the year-ago period. This reflected favorable changes in trade receivables, largely due to the timing of receipts, Adjusted EBITDA growth, and favorable changes in cash related to commodity margin requirements and inventories versus the prior year period. These impacts were partially offset by higher cash outflows for variable compensation versus the year-ago period. Free Cash Flow(1) for the first quarter of 2021 increased to$583 million , up 619.4 percent versus the comparable prior year period as net cash provided by operating activities was partially offset by higher capital expenditures versus the prior year period.
Outlook
The Company continues to expect it will deliver 2021 financial performance ahead of its strategic plan.
For the second quarter of 2021, and based on performance to date, the Company currently expects a mid-single-digit percentage increase in both Organic
End Notes
(1) |
Organic |
|
(2) |
Second quarter 2021 guidance for Organic |
Earnings Discussion and Webcast Information
A pre-recorded management discussion of
ABOUT
We are driving transformation at
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words such as “plan,” "believe," "anticipate," "reflect," "invest," "see," "make," "expect," "deliver," "drive," “improve,” “intend,” "assess," "remain," "evaluate," “establish,” “focus,” “build,” “turn,” “expand,” “leverage,” "grow," "will," and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the Company's plans, impacts of accounting standards and guidance, growth, legal matters, taxes, costs and cost savings, impairments, dividends, expectations, investments, innovations, opportunities, capabilities, execution, initiatives, and pipeline. These forward-looking statements reflect management's current expectations and are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company's control.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impacts of COVID-19 and government and consumer responses; operating in a highly competitive industry; the Company’s ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in the Company's relationships with significant customers or suppliers, or in other business relationships; the Company’s ability to maintain, extend, and expand its reputation and brand image; the Company’s ability to leverage its brand value to compete against private label products; the Company’s ability to drive revenue growth in its key product categories or platforms, increase its market share, or add products that are in faster-growing and more profitable categories; product recalls or other product liability claims; the Company’s ability to identify, complete, or realize the benefits from strategic acquisitions, alliances, divestitures, joint ventures, or other investments; the Company's ability to successfully execute its strategic initiatives; the impacts of the Company's international operations; the Company's ability to protect intellectual property rights; the Company's ownership structure; the Company’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve its competitiveness; the Company's level of indebtedness, as well as our ability to comply with covenants under our debt instruments; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; compliance with laws, regulations, and related interpretations and related legal claims or other regulatory enforcement actions, including additional risks and uncertainties related to any potential actions resulting from the Securities and Exchange Commission’s (“SEC”) ongoing investigation, as well as potential additional subpoenas, litigation, and regulatory proceedings; failure to maintain an effective system of internal controls; a downgrade in the Company's credit rating; the impact of future sales of the Company's common stock in the public market; the Company’s ability to continue to pay a regular dividend and the amounts of any such dividends; unanticipated business disruptions and natural events in the locations in which the Company or the Company's customers, suppliers, distributors, or regulators operate; economic and political conditions in
Non-GAAP Financial Measures
The non-GAAP financial measures provided should be viewed in addition to, and not as an alternative for, results prepared in accordance with accounting principles generally accepted in
To supplement the financial information provided, the Company has presented Organic
Management uses these non-GAAP financial measures to assist in comparing the Company's performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations. Management believes that presenting the Company's non-GAAP financial measures (i.e., Organic
Organic
Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding restructuring activities); in addition to these adjustments, the Company excludes, when they occur, the impacts of restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, and equity award compensation expense (excluding restructuring activities). The Company also presents Adjusted EBITDA on a constant currency basis. The Company calculates the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which it calculates the previous year's results using the current year's exchange rate. Adjusted EBITDA and Constant Currency Adjusted EBITDA are tools that can assist management and investors in comparing the Company's performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations.
Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the impacts of restructuring activities, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, losses/(gains) on the sale of a business, other losses/(gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment costs, and
Free Cash Flow is defined as net cash provided by/(used for) operating activities less capital expenditures. The Company believes Free Cash Flow provides a measure of the Company's core operating performance, the cash-generating capabilities of the Company's business operations, and is one factor used in determining the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.
See the attached schedules for supplemental financial data, which includes the financial information, the non-GAAP financial measures and corresponding reconciliations to the comparable GAAP financial measures for the relevant periods.
|
|
||||
Schedule 1 |
|||||
Condensed Consolidated Statements of Income (in millions, except per share data) (Unaudited) |
|||||
|
For the Three Months Ended |
||||
|
|
|
|
||
Net sales |
$ |
6,394 |
|
$ |
6,157 |
Cost of products sold |
4,193 |
|
4,299 |
||
Gross profit |
2,201 |
|
1,858 |
||
Selling, general and administrative expenses, excluding impairment losses |
882 |
|
862 |
||
|
230 |
|
226 |
||
Selling, general and administrative expenses |
1,112 |
|
1,088 |
||
Operating income/(loss) |
1,089 |
|
770 |
||
Interest expense |
415 |
|
310 |
||
Other expense/(income) |
(30) |
|
(81) |
||
Income/(loss) before income taxes |
704 |
|
541 |
||
Provision for/(benefit from) income taxes |
136 |
|
160 |
||
Net income/(loss) |
568 |
|
381 |
||
Net income/(loss) attributable to noncontrolling interest |
5 |
|
3 |
||
Net income/(loss) attributable to common shareholders |
$ |
563 |
|
$ |
378 |
|
|
|
|
||
Basic shares outstanding |
1,223 |
|
1,222 |
||
Diluted shares outstanding |
1,232 |
|
1,224 |
||
|
|
|
|
||
Per share data applicable to common shareholders: |
|
|
|
||
Basic earnings/(loss) per share |
$ |
0.46 |
|
$ |
0.31 |
Diluted earnings/(loss) per share |
0.46 |
|
0.31 |
|
|
|
|||||||||||||
Schedule 2 |
|||||||||||||||
Reconciliation of For the Three Months Ended (dollars in millions) (Unaudited) |
|||||||||||||||
|
|
|
Currency |
|
Acquisitions and Divestitures |
|
Organic Net Sales |
|
Price |
|
Volume/Mix |
||||
|
|
|
|
|
|||||||||||
|
$ |
4,608 |
|
$ |
— |
|
$ |
— |
|
$ |
4,608 |
|
|
||
International |
1,394 |
|
64 |
|
— |
|
1,330 |
|
|
||||||
|
392 |
|
22 |
|
— |
|
370 |
|
|
||||||
|
$ |
6,394 |
|
$ |
86 |
|
$ |
— |
|
$ |
6,308 |
|
|
||
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
|
$ |
4,495 |
|
$ |
— |
|
$ |
— |
|
$ |
4,495 |
|
|
||
International |
1,301 |
|
6 |
|
— |
|
1,295 |
|
|
||||||
|
361 |
|
— |
|
— |
|
361 |
|
|
||||||
|
$ |
6,157 |
|
$ |
6 |
|
$ |
— |
|
$ |
6,151 |
|
|
||
Year-over-year growth rates |
|
|
|
|
|
|
|
||||||||
|
|
2.5% |
0.0 pp |
|
0.0 pp |
|
|
2.5% |
1.0 pp |
|
1.5 pp |
||||
International |
|
7.2% |
4.5 pp |
|
0.0 pp |
|
|
2.7% |
2.2 pp |
|
0.5 pp |
||||
|
|
8.8% |
6.3 pp |
|
0.0 pp |
|
|
2.5% |
4.9 pp |
|
(2.4) pp |
||||
|
|
3.9% |
1.4 pp |
|
0.0 pp |
|
|
2.5% |
1.5 pp |
|
1.0 pp |
|
|
||||||||||
Schedule 3 |
|||||||||||
Reconciliation of For the Three Months Ended (dollars in millions) (Unaudited) |
|||||||||||
|
|
|
Currency |
|
Acquisitions and Divestitures |
|
Organic Net Sales |
||||
|
|
|
|||||||||
|
$ |
4,608 |
|
$ |
— |
|
$ |
— |
$ |
4,608 |
|
International |
1,394 |
|
19 |
|
— |
1,375 |
|||||
|
392 |
|
19 |
|
— |
373 |
|||||
|
$ |
6,394 |
|
$ |
38 |
|
$ |
— |
$ |
6,356 |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
|
$ |
4,224 |
|
$ |
— |
|
$ |
— |
$ |
4,224 |
|
International |
1,285 |
|
7 |
|
13 |
1,265 |
|||||
|
450 |
|
— |
|
91 |
359 |
|||||
|
$ |
5,959 |
|
$ |
7 |
|
$ |
104 |
$ |
5,848 |
|
Year-over-year growth rates |
|
|
|
|
|
||||||
|
|
9.1% |
0.0 pp |
|
0.0 pp |
|
|
9.1% |
|||
International |
|
8.5% |
0.9 pp |
|
(1.2) pp |
|
|
8.8% |
|||
|
|
(12.7)% |
4.3 pp |
|
(21.1) pp |
|
|
4.1% |
|||
|
|
7.3% |
0.5 pp |
|
(1.9) pp |
|
|
8.7% |
|
||||||||
Schedule 4 |
||||||||
Reconciliation of Net Income/(Loss) to Adjusted EBITDA (dollars in millions) (Unaudited) |
||||||||
|
For the Three Months Ended |
|||||||
|
|
|
|
|
|
|||
Net income/(loss) |
$ |
568 |
|
$ |
381 |
|
$ |
404 |
Interest expense |
415 |
|
310 |
|
321 |
|||
Other expense/(income) |
(30) |
|
(81) |
|
(380) |
|||
Provision for/(benefit from) income taxes |
136 |
|
160 |
|
217 |
|||
Operating income/(loss) |
1,089 |
|
770 |
|
562 |
|||
Depreciation and amortization (excluding restructuring activities) |
222 |
|
243 |
|
234 |
|||
Restructuring activities |
18 |
|
— |
|
27 |
|||
Deal costs |
7 |
|
— |
|
8 |
|||
Unrealized losses/(gains) on commodity hedges |
(37) |
|
143 |
|
(29) |
|||
Impairment losses |
230 |
|
226 |
|
620 |
|||
Equity award compensation expense (excluding restructuring activities) |
51 |
|
33 |
|
9 |
|||
Adjusted EBITDA |
$ |
1,580 |
|
$ |
1,415 |
|
$ |
1,431 |
|
|
|
|
|
|
|||
Segment Adjusted EBITDA: |
|
|
|
|
|
|||
|
$ |
1,280 |
|
$ |
1,209 |
|
$ |
1,139 |
International |
283 |
|
245 |
|
238 |
|||
|
87 |
|
55 |
|
121 |
|||
General corporate expenses |
(70) |
|
(94) |
|
(67) |
|||
Adjusted EBITDA |
$ |
1,580 |
|
$ |
1,415 |
|
$ |
1,431 |
|
|
|||||||
Schedule 5 |
||||||||
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA For the Three Months Ended (dollars in millions) (Unaudited) |
||||||||
|
Adjusted EBITDA |
Currency |
Constant Currency Adjusted EBITDA |
|||||
|
|
|||||||
|
$ |
1,280 |
$ |
— |
$ |
1,280 |
||
International |
283 |
|
16 |
|
267 |
|||
|
87 |
|
5 |
|
82 |
|||
General corporate expenses |
(70) |
|
(1) |
|
(69) |
|||
|
$ |
1,580 |
$ |
20 |
$ |
1,560 |
||
|
|
|
|
|||||
|
|
|
|
|||||
|
$ |
1,209 |
$ |
— |
$ |
1,209 |
||
International |
245 |
|
3 |
|
242 |
|||
|
55 |
|
— |
|
55 |
|||
General corporate expenses |
(94) |
|
— |
|
(94) |
|||
|
$ |
1,415 |
$ |
3 |
$ |
1,412 |
||
Year-over-year growth rates |
|
|
|
|
||||
|
|
5.8% |
|
0.0 pp |
|
5.8% |
||
International |
|
15.5% |
|
5.3 pp |
|
10.2% |
||
|
|
57.4% |
|
9.6 pp |
|
47.8% |
||
General corporate expenses |
|
(25.9)% |
|
1.3 pp |
|
(27.2)% |
||
|
|
11.6% |
|
1.2 pp |
|
10.4% |
|
|
|||||||||
Schedule 6 |
||||||||||
Reconciliation of Adjusted EBITDA to Constant Currency Adjusted EBITDA For the Three Months Ended (dollars in millions) (Unaudited) |
||||||||||
|
Adjusted EBITDA |
|
|
Currency |
|
|
Constant Currency Adjusted EBITDA |
|||
|
|
|||||||||
|
$ |
1,280 |
|
$ |
— |
|
$ |
1,280 |
||
International |
283 |
|
11 |
|
272 |
|||||
|
87 |
|
4 |
|
83 |
|||||
General corporate expenses |
(70) |
|
(1) |
|
(69) |
|||||
|
$ |
1,580 |
|
$ |
14 |
|
$ |
1,566 |
||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
$ |
1,139 |
|
$ |
— |
|
$ |
1,139 |
||
International |
238 |
|
4 |
|
234 |
|||||
|
121 |
|
— |
|
121 |
|||||
General corporate expenses |
(67) |
|
— |
|
(67) |
|||||
|
$ |
1,431 |
|
$ |
4 |
|
$ |
1,427 |
||
Year-over-year growth rates |
|
|
|
|
|
|||||
|
|
12.4% |
|
0.0 pp |
|
|
|
12.4% |
||
International |
|
18.3% |
|
2.4 pp |
|
|
|
15.9% |
||
|
|
(27.6)% |
|
3.6 pp |
|
|
|
(31.2)% |
||
General corporate expenses |
|
3.6% |
|
1.1 pp |
|
|
|
2.5% |
||
|
|
10.4% |
|
0.7 pp |
|
|
|
9.7% |
|
|||||
Schedule 7 |
|||||
Reconciliation of Diluted EPS to Adjusted EPS (Unaudited) |
|||||
|
For the Three Months Ended |
||||
|
|
|
|
||
Diluted EPS |
$ |
0.46 |
|
$ |
0.31 |
Restructuring activities(a) |
0.01 |
|
— |
||
Unrealized losses/(gains) on commodity hedges(b) |
(0.02) |
|
0.09 |
||
Impairment losses(c) |
0.19 |
|
0.18 |
||
Losses/(gains) on sale of business(d) |
0.02 |
|
— |
||
Debt prepayment and extinguishment costs(e) |
0.06 |
|
— |
||
Adjusted EPS |
$ |
0.72 |
|
$ |
0.58 |
(a) |
Gross expenses included in restructuring activities were |
|
|
• |
Cost of products sold included expenses of |
|
• |
SG&A included expenses of |
(b) |
Gross expenses/(income) included in unrealized losses/(gains) on commodity hedges were income of |
|
(c) |
Gross impairment losses, all of which related to goodwill, were |
|
(d) |
Gross expenses included in losses/(gains) on sale of business were |
|
(e) |
Gross expenses included in debt prepayment and extinguishment costs were |
|
|
|
|||||||
Schedule 8 |
||||||||
(Unaudited) |
||||||||
|
For the Three Months Ended |
|
|
|||||
|
|
|
|
|
$ Change |
|||
Key drivers of change in Adjusted EPS: |
|
|
|
|
|
|||
Results of operations(a) |
$ |
0.84 |
|
$ |
0.73 |
|
$ |
0.11 |
Interest expense |
(0.20) |
|
(0.20) |
|
— |
|||
Other expense/(income)(b) |
0.03 |
|
0.05 |
|
(0.02) |
|||
Effective tax rate |
0.05 |
|
— |
|
0.05 |
|||
Adjusted EPS |
$ |
0.72 |
|
$ |
0.58 |
|
0.14 |
(a) |
Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of |
|
(b) |
Includes non-cash amortization of prior service credits, which accounted for a benefit to Adjusted EPS from other expense/(income) of |
|
|
|
||||
Schedule 9 |
|||||
Condensed Consolidated Balance Sheets (in millions, except per share data) (Unaudited) |
|||||
|
|
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
2,360 |
|
$ |
3,417 |
Trade receivables, net |
2,079 |
|
2,063 |
||
Inventories |
2,676 |
|
2,773 |
||
Prepaid expenses |
136 |
|
132 |
||
Other current assets |
621 |
|
574 |
||
Assets held for sale |
5,264 |
|
1,863 |
||
Total current assets |
13,136 |
|
10,822 |
||
Property, plant and equipment, net |
6,579 |
|
6,876 |
||
|
31,447 |
|
33,089 |
||
Intangible assets, net |
45,021 |
|
46,667 |
||
Other non-current assets |
2,481 |
|
2,376 |
||
TOTAL ASSETS |
$ |
98,664 |
|
$ |
99,830 |
LIABILITIES AND EQUITY |
|
|
|
||
Commercial paper and other short-term debt |
$ |
6 |
|
$ |
6 |
Current portion of long-term debt |
126 |
|
230 |
||
Trade payables |
4,225 |
|
4,304 |
||
Accrued marketing |
1,001 |
|
946 |
||
Interest payable |
371 |
|
358 |
||
Other current liabilities |
1,824 |
|
2,200 |
||
Liabilities held for sale |
17 |
|
17 |
||
Total current liabilities |
7,570 |
|
8,061 |
||
Long-term debt |
27,074 |
|
28,070 |
||
Deferred income taxes |
11,619 |
|
11,462 |
||
Accrued postemployment costs |
244 |
|
243 |
||
Other non-current liabilities |
1,726 |
|
1,751 |
||
TOTAL LIABILITIES |
48,233 |
|
49,587 |
||
Equity: |
|
|
|
||
Common stock, |
12 |
|
12 |
||
Additional paid-in capital |
54,678 |
|
55,096 |
||
Retained earnings/(deficit) |
(2,131) |
|
(2,694) |
||
Accumulated other comprehensive income/(losses) |
(1,898) |
|
(1,967) |
||
|
(373) |
|
(344) |
||
Total shareholders' equity |
50,288 |
|
50,103 |
||
Noncontrolling interest |
143 |
|
140 |
||
TOTAL EQUITY |
50,431 |
|
50,243 |
||
TOTAL LIABILITIES AND EQUITY |
$ |
98,664 |
|
$ |
99,830 |
|
|
||||
Schedule 10 |
|||||
Condensed Consolidated Statements of Cash Flow (in millions) (Unaudited) |
|||||
|
For the Three Months Ended |
||||
|
|
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||
Net income/(loss) |
$ |
568 |
|
$ |
381 |
Adjustments to reconcile net income/(loss) to operating cash flows: |
|
|
|
||
Depreciation and amortization |
222 |
|
243 |
||
Amortization of postretirement benefit plans prior service costs/(credits) |
(2) |
|
(31) |
||
Equity award compensation expense |
51 |
|
33 |
||
Deferred income tax provision/(benefit) |
127 |
|
(46) |
||
Postemployment benefit plan contributions |
(9) |
|
(9) |
||
|
230 |
|
226 |
||
Nonmonetary currency devaluation |
4 |
|
1 |
||
Loss/(gain) on sale of business |
19 |
|
2 |
||
Other items, net |
30 |
|
169 |
||
Changes in current assets and liabilities: |
|
|
|
||
Trade receivables |
(34) |
|
(423) |
||
Inventories |
(101) |
|
(231) |
||
Accounts payable |
(11) |
|
(2) |
||
Other current assets |
(54) |
|
(142) |
||
Other current liabilities |
(230) |
|
41 |
||
Net cash provided by/(used for) operating activities |
810 |
|
212 |
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||
Capital expenditures |
(227) |
|
(131) |
||
Other investing activities, net |
11 |
|
9 |
||
Net cash provided by/(used for) investing activities |
(216) |
|
(122) |
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||
Repayments of long-term debt |
(1,014) |
|
(407) |
||
Debt prepayment and extinguishment costs |
(103) |
|
— |
||
Proceeds from revolving credit facility |
— |
|
4,000 |
||
Dividends paid |
(489) |
|
(488) |
||
Other financing activities, net |
(37) |
|
— |
||
Net cash provided by/(used for) financing activities |
(1,643) |
|
3,105 |
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(8) |
|
(71) |
||
Cash, cash equivalents, and restricted cash |
|
|
|
||
Net increase/(decrease) |
(1,057) |
|
3,124 |
||
Balance at beginning of period |
3,418 |
|
2,280 |
||
Balance at end of period |
$ |
2,361 |
|
$ |
5,404 |
|
|
||||
Schedule 11 |
|||||
Reconciliation of Net Cash Provided By/(Used For) Operating Activities to Free Cash Flow (in millions) (Unaudited) |
|||||
|
For the Three Months Ended |
||||
|
|
|
|
||
Net cash provided by/(used for) operating activities |
$ |
810 |
|
$ |
212 |
Capital expenditures |
(227) |
|
(131) |
||
Free Cash Flow |
$ |
583 |
|
$ |
81 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005218/en/
Michael.Mullen@kraftheinz.com
ir@kraftheinz.com
Source: