Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Kraft Heinz outlines growth strategy at CAGNY conference

Published 21/02/2024, 12:44
Updated 21/02/2024, 12:44
© Reuters.

PITTSBURGH & CHICAGO - The Kraft Heinz Company (NASDAQ:KHC) presented its growth strategy and financial targets at the Consumer Analyst Group of New York (CAGNY) Conference today. CEO Carlos Abrams-Rivera and CFO Andre Maciel shared the company's plan to generate consistent top-tier stockholder returns through a refined approach to its business.

Kraft Heinz's growth strategy is centered around three pillars: North America Retail, Global Away From Home, and Emerging Markets. The company aims to boost growth by investing in marketing, research and development, technology, and innovation. Additionally, the Brand Growth System, a new global methodology, has been introduced to enhance brand proposition and performance.

To support these investments, Kraft Heinz is focused on driving efficiencies across its supply chain and expanding centralized services. The company highlighted its competitive advantages, including Agile@Scale methodologies, strategic partnerships, and an ownership-centric culture.

The company has also adjusted its portfolio strategy, creating three new platform roles: Accelerate, Protect, and Balance, with the Accelerate platforms expected to drive outsized growth. Investments will be prioritized in these platforms, which include Taste Elevation, Easy Ready Meals, and Substantial Snacking.

Kraft Heinz confirmed its long-term financial targets, with an unchanged organic net sales growth of 2% to 3%, adjusted operating income growth of 4% to 6%, and adjusted EPS growth of 6% to 8%. The company also aims for a free cash flow conversion of approximately 100%.

For the 2024 outlook, the company reiterated its expectations from the fourth quarter and full year 2023 earnings. It anticipates organic net sales growth of 0% to 2%, adjusted operating income growth of 2% to 4%, and adjusted EPS growth of 1% to 3%. These forecasts account for potential price contributions and volume increases in the latter half of the year.

This article is based on a press release statement from The Kraft Heinz Company.

InvestingPro Insights

The Kraft Heinz Company (NASDAQ:KHC) has outlined a robust growth strategy that emphasizes efficiency and innovation. To further understand the financial health and future prospects of the company, key metrics from InvestingPro provide a snapshot of Kraft Heinz's current market position:

  • The company boasts a market capitalization of approximately $43.21 billion, reflecting its significant presence in the industry.
  • With an adjusted P/E ratio over the last twelve months of 12.33, Kraft Heinz is trading at a valuation that suggests investors are paying less for each dollar of earnings compared to its near-term earnings growth, aligning with the InvestingPro Tip highlighting the company's low P/E ratio relative to its growth.
  • The dividend yield stands at a competitive 4.49%, which may be particularly attractive to income-focused investors.

InvestingPro Tips for Kraft Heinz underscore the company's strong financial performance and the analysts' outlook. Notably, Kraft Heinz has achieved a perfect Piotroski Score of 9, indicating high-quality business operations. In addition, analysts have confidence in the company's profitability this year, which is further substantiated by its profitability over the last twelve months.

However, it's important to note that five analysts have revised their earnings estimates downwards for the upcoming period, suggesting that investors should keep an eye on future earnings reports and management commentary for any signs of changing market conditions or internal challenges.

For those looking to delve deeper into Kraft Heinz's financials and gain additional insights, there are more InvestingPro Tips available. By visiting https://www.investing.com/pro/KHC, you can access a comprehensive list of tips to inform your investment decisions. Use coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking the full potential of the InvestingPro platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.