Despite challenges in volume growth, Kraft Heinz Co. reported a decline in volume/mix of 3.5% for fiscal year 2024, with North America experiencing a 4.2% decrease. The company’s organic net sales also fell by 2.1% to $25.9 billion for the year.
CEO Carlos Abrams-Rivera identified four key brands — Lunchables, Kraft Mayonnaise, Kraft Mac & Cheese, and Capri Sun — as the main contributors to the weak performance in North America. To address this, the company has initiated a ‘brand growth system’ to identify opportunities for brand enhancement.
Efforts to revitalize these brands include expanding Lunchables into new occasions, introducing new flavors to Kraft Mayonnaise, launching new varieties of Kraft Mac & Cheese, and renovating the Capri Sun brand with new packaging options.
Despite the challenges, the company reported a net income of $2.7 billion for the year, a slight decrease from the previous year. Operating income, however, fell significantly due to impairment charges taken during the year.
Looking ahead to fiscal 2025, Kraft Heinz anticipates organic sales to remain flat to down 2.5% compared to fiscal 2024. The company aims for growth in Emerging Markets and global away from home segments while expecting a slow recovery in US retail-challenged categories.
In the fourth quarter, Kraft Heinz saw a significant increase in earnings, largely attributed to a non-US deferred tax asset. Quarterly sales, however, declined by 4.1% compared to the previous year.