Kraft Heinz Q2 Beat, Considers Brand Spin-Offs

Kraft Heinz reported second-quarter 2025 results that surpassed Wall Street expectations for both sales and profits, driven by strong demand for pantry staples amid inflation. Despite this, organic sales and volume declined year-over-year, with North America experiencing the steepest drops, and total net sales falling 1.9% to $6.35 billion. Strategic pricing, especially in coffee, helped offset weaker volumes in areas like cold cuts and frozen snacks. The company reaffirmed its full-year 2025 guidance with organic net sales expected to decline 1.5% to 3.5% and adjusted earnings projected at $2.51 to $2.67 per share. Kraft Heinz is actively considering strategic transactions, including possible spin-offs of some brands, but no final decisions or timelines have been set. A $9.3 billion impairment charge affected earnings, while the company remains focused on innovation, international growth, and adapting to competition from private labels.