Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) reported mixed financial results for the fourth quarter and full year 2025, along with announcing it has paused its business separation plans.
For the fourth quarter, the company posted adjusted earnings per share of $0.67, exceeding Wall Street’s consensus of $0.61, while revenue totaled $6.35 billion, slightly below the forecast of $6.38 billion.
Net sales declined 3.4%, with organic net sales down 4.2%.
Gross profit margin decreased 150 basis points to 32.6%, and adjusted gross profit margin fell 130 basis points to 33.1%.
Operating income reached $1.1 billion, with adjusted operating income down 15.9% to $1.2 billion.
For the full year 2025, Kraft Heinz reported net sales of $26 billion, down 3.5%, while adjusted operating income totaled $4.7 billion, an 11.5% decline.
The company recorded a net loss of $4.7 billion, driven by $9.3 billion in non-cash impairment charges.
Net cash provided by operating activities rose 6.6% to $4.5 billion, and free cash flow increased 15.9% to $3.7 billion. The company returned $2.3 billion in capital to shareholders.
Kraft Heinz also announced a $600 million investment across marketing, sales, research and development, product quality initiatives, and select pricing adjustments, aimed at accelerating growth in its US business and its Taste Elevation portfolio. As part of its strategy to focus resources on profitable growth, the company said it will pause work related to the previously planned separation.
“My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan,” Kraft Heinz CEO Steve Cahillane said in a statement. “As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year.”
Shares of Kraft Heinz were little changed on the update, up 0.4% at about $25 late morning on Tuesday.