The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the
“Company”) today announced that the Board of Directors approved a
share repurchase program authorizing the Company to repurchase up
to $3 billion of the Company’s outstanding shares of common stock
through December 26, 2026.
Under the share repurchase program, the Company intends to
repurchase shares with excess cash after allocations for
disciplined capital spending, including investments to support
organic growth in key areas of its business, payment of an
attractive dividend, maintaining a targeted Net Leverage1 of
approximately 3.0x, and evaluation of strategic opportunities,
including acquisitions, divestitures, and partnerships.
“In the third quarter, we hit a milestone in our transformation
— reaching our targeted Net Leverage1 of approximately 3.0x. A
stronger balance sheet, along with advancements we have made across
the business, gives us further conviction behind our strategy and
the belief that company shares are an attractive investment
opportunity,” said Kraft Heinz CEO and Chair of the Board Miguel
Patricio. “As such, we are in a position of strength to round out
our capital allocation policy. Our Board authorized a $3 billion
share repurchase program over the next three years, allowing us to
provide further value to our stockholders while underscoring our
commitment to delivering profitable growth and driving strong
returns.”
In determining the amount of capital to allocate to share
repurchases, the Company takes into account, among other things,
its historical and expected business performance and cash and
liquidity position, as well as global economic and market
conditions and the market price of the Company’s common stock. The
timing, manner, price, and amount of any repurchases under the
share repurchase program are determined by the Company in its
discretion. Purchases may be effected through open market
transactions, privately negotiated transactions, transactions
structured through investment banking institutions, or other means.
The Company is not obligated to repurchase any specific number of
shares and the program may be modified, suspended, or discontinued
at any time. The share repurchase program will be in addition to
the Company’s share repurchases to offset the dilutive effect of
equity-based compensation.
End Note
(1) Net Leverage is a non-GAAP financial measure. Please see
discussion of non-GAAP financial measures and reconciliations at
the end of this press release for more information.
ABOUT THE KRAFT HEINZ COMPANY
We are driving transformation at The Kraft Heinz Company
(Nasdaq: KHC), inspired by our Purpose, Let’s Make Life Delicious.
Consumers are at the center of everything we do. With 2022 net
sales of approximately $26 billion, we are committed to growing our
iconic and emerging food and beverage brands on a global scale. We
leverage our scale and agility to unleash the full power of Kraft
Heinz across a portfolio of six consumer-driven product platforms.
As global citizens, we’re dedicated to making a sustainable,
ethical impact while helping feed the world in healthy, responsible
ways. Learn more about our journey by visiting
www.kraftheinzcompany.com or following us on LinkedIn.
Forward-Looking Statements
This press release contains a number of forward-looking
statements, including statements relating to the Company’s plans
regarding share repurchases. Words such as “account,” “allow,”
“believe,” “evaluate,” “intend,” “invest,” “provide,” “support,”
“will,” and variations of such words and similar future or
conditional expressions are intended to identify forward-looking
statements. These forward-looking statements are subject to a
number of risks and uncertainties, many of which are difficult to
predict and beyond Kraft Heinz's control, which could cause actual
results to differ materially from those indicated in the
forward-looking statements. Those factors include, but are not
limited to, the Company’s ability to implement its plans regarding
share repurchases and the payment of dividends and/or to return
value to stockholders, changes in the market price of the Company’s
common stock, global economic and market conditions, alternative
investment opportunities, and the risk factors set forth in the
Company’s filings with the Securities and Exchange Commission,
including the Company's most recently filed Annual Report on Form
10-K and subsequent reports on Forms 10-Q and 8-K. Kraft Heinz
disclaims and does not undertake any obligation to update, revise,
or withdraw any forward-looking statement in this press release,
except as required by applicable law or regulation.
Non-GAAP Financial Measures
The non-GAAP financial measures provided in this press release
should be viewed in addition to, and not as an alternative for,
results prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP”).
To supplement the financial information provided, the Company
has presented Adjusted EBITDA and Net Leverage, which are
considered non-GAAP financial measures. The non-GAAP financial
measures presented may differ from similarly titled non-GAAP
financial measures presented by other companies, and other
companies may not define these non-GAAP financial measures in the
same way. These measures are not substitutes for their comparable
GAAP financial measures, such as net income/(loss) or other
measures prescribed by GAAP, and there are limitations to using
non-GAAP financial measures.
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. The Company believes:
- Adjusted EBITDA provides important comparability of underlying
operating results, allowing investors and management to assess the
Company’s operating performance on a consistent basis; and
- Net Leverage 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.
Management believes that presenting the Company’s non-GAAP
financial measures is useful to investors because it (i) provides
investors with meaningful supplemental information regarding
financial performance by excluding certain items, (ii) permits
investors to view performance using the same tools that management
uses to budget, make operating and strategic decisions, and
evaluate historical performance, and (iii) otherwise provides
supplemental information that may be useful to investors in
evaluating the Company’s results. The Company believes that the
presentation of these non-GAAP financial measures, when considered
together with the corresponding GAAP financial measures and the
reconciliations to those measures, provides investors with
additional understanding of the factors and trends affecting the
Company’s business than could be obtained absent these
disclosures.
Definitions
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 divestiture-related license income,
restructuring activities, deal costs, unrealized losses/(gains) on
commodity hedges, impairment losses, certain non-ordinary course
legal and regulatory matters, and equity award compensation expense
(excluding restructuring activities).
Net Leverage is defined as debt, less cash, cash
equivalents and short-term investments divided by Adjusted
EBITDA.
The Kraft Heinz Company
Reconciliation of Net
Income/(Loss) to Adjusted EBITDA
(dollars in millions)
(Unaudited)
For the Three Months
Ended
For the Twelve Months
Ended
December 31,
2022
April 1, 2023
July 1, 2023
September 30,
2023
September 30,
2023
Net income/(loss)
$
887
$
837
$
998
$
254
$
2,976
Interest expense
217
227
228
228
900
Other expense/(income)
(42
)
(35
)
(24
)
(35
)
(136
)
Provision for/(benefit from) income
taxes
164
214
174
206
758
Operating income/(loss)
1,226
1,243
1,376
653
4,498
Depreciation and amortization (excluding
restructuring activities)
246
217
229
234
926
Divestiture-related license income
(15
)
(13
)
(14
)
(14
)
(56
)
Restructuring activities
36
(10
)
(10
)
45
61
Deal costs
1
—
—
—
1
Unrealized losses/(gains) on commodity
hedges
(2
)
11
(16
)
(48
)
(55
)
Impairment losses
—
—
—
662
662
Certain non-ordinary course legal and
regulatory matters
210
1
1
—
212
Equity award compensation expense
41
31
46
33
151
Adjusted EBITDA
$
1,743
$
1,480
$
1,612
$
1,565
$
6,400
Current portion of long-term debt
608
Long-term debt
19,270
Less: Cash and cash equivalents
(1,052
)
$
18,826
Net Leverage
2.9
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231127896825/en/
Alex Abraham (media) Alex.Abraham@kraftheinz.com
Anne-Marie Megela (investors) ir@kraftheinz.com
Kraft Heinz (NASDAQ:KHC)
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Kraft Heinz (NASDAQ:KHC)
過去 株価チャート
から 7 2023 まで 7 2024