Kraft Heinz reports US$8B loss in H1 2025 amid lower sales, US$9.3B impairment charge 

USA – Kraft Heinz has reported a net loss of US$8 billion for the first half of fiscal 2025, driven largely by a non-cash impairment charge of US$9.3 billion.  

The company also recorded a 1.9% year-over-year decline in net sales, falling to US$6.352 billion from US$6.476 billion. 

For the second quarter ended June 28, net sales totaled US$6.4 billion, a slight drop from US$6.5 billion in the same period last year. Organic net sales declined by 2%, although this marked an improvement compared to the 4.7% drop reported in the first quarter. 

Gross profit for Q2 decreased by 4.8% to US$2.183 billion, down from US$2.294 billion in the prior year. Operating income fell sharply, decreasing by 1,627.6% to a loss of US$8.0 billion.  

The decline was primarily attributed to the US$9.3 billion impairment loss, resulting from a sustained drop in the company’s share price and market capitalization. 

Despite the financial challenges, Kraft Heinz CEO Carlos Abrams-Rivera maintained a positive outlook. He highlighted ongoing improvements in North America Retail performance, noting the expanded reach of Capri Sun, new offerings from the Lunchables brand, and pricing and packaging updates for Kraft Mayo as examples of progress. 

Abrams-Rivera also reiterated the company’s strategic direction, although he declined to provide further details on previously announced plans to “unlock shareholder value” through strategic transactions.  

He emphasized continued investment across key areas, including emerging markets and the away-from-home segment. 

“In what remains a volatile backdrop, consumers are looking for value—whether through price or product benefits—and we are delivering,” he stated. 

Global CFO Andre Maciel announced that Kraft Heinz will raise its marketing spending by at least 20% in the second half of fiscal 2025, focusing primarily on North America. 

The company aims for a double-digit return on these investments through optimized media strategies and targeted brand allocation. 

Kraft Heinz reaffirmed its full-year guidance, expecting organic net sales to decline by between 1.5% and 3.5%. Adjusted operating income, on a constant currency basis, is projected to decrease between 5% and 10%.  

The company cited inflation, tariffs, and uncertainty in investment returns as key factors affecting its forecast. 

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