In a February 16th release, The Kraft Heinz Company (KHC) posted financial results for the 4th quarter and fiscal 2021. Along with other international food manufacturers, the company and its competitors are subject to the risks of currency fluctuation and increased costs for food ingredients, packaging, transport and labor in a competitive environment still restrained by COVID.
For the 4th Quarter of FY 2021 ending December 25th, net loss was $(255) million on total revenue of $6,709 million. Comparable figures for the 4th quarter of fiscal 2020 ending December 26th 2020 were net income of $1,034 million on total revenue of $6,039 million. Diluted EPS fell from $0.84 for the 4th quarter of fiscal 2020 to $(0.21) for the most recent quarter. The loss in Q4 of 2021was due to a charge of $1,238 and an increase in SGA of $1,209 compared to Q4 2020.
For FY 2021 net income was $1,012 million on revenue of $26,042 million compared to net income of $356 on revenue of $26,185 million for FY 2020 impacted by COVID. Diluted EPS for FY 2021 attained $0.83 compared to $0.29 million for FY 2020.
On commenting on results Miguel Patricio CEO stated, “Our strategic transformation has powered another year of outstanding performance,” He added “Our achievements are proof that our scale and agility have led to better results and greater relevance with customers and consumers. We are generating efficiencies to fuel incremental investments in our business, which, along with successful pricing, are mitigating inflationary pressures”.
On December 25th 2021, KHC posted assets of $93,394 million of which $74,838 million comprised goodwill and intangibles. Long-term debt combined with other non-current liabilities amounted to $22,603 million. The Company had an intraday market capitalization of $542,340 million on February 16th. KHC trades with a forward P/E of 13.2 and has ranged over a 52-week period from $32.78 to $44.95 with a 50-day moving average of $35.75. Twelve-month trailing operating margin was 22.0 percent and profit margin 8.8 percent. Return on assets over the past twelve months was 3.7 percent and the return on equity 4.7 percent. At close of trading on February 15th pre-release, KHC was priced at $34.67. At market close, post-release on February 16th KHC traded at at $36.62