Kraft Heinz: its dependence on Walmart
The Kraft Heinz Company reported that of its total net sales in 2022, approximately 21% were to its largest customer, Walmart Inc.
In 2022, the five largest customers in its North America segment accounted for about 46% of North America segment net sales and the five largest customers in its International segment comprised 14% of International segment net sales.
Previously, Walmart accounted for 22% of its total net sales in 2020 and 2021. Both segments have sales to Walmart.
Financial results of Kraft Heinz
With 37,000 employees at the end of 2022, which is 1,000 more than in the previous year, Kraft Heinz recorded net sales of US$26.485 billion in 2022, a year-on-year increase of 1.7%, while its net income was US$2.368 billion, an increase of 131%, at an annual rate.
Kraft Heinz is a global company with sales and operations in numerous countries in developed and emerging markets. Approximately 30% of its 2022 net sales were generated outside the United States.
Its business? The company manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, soft drinks, coffee and other food products worldwide.
In the second quarter of 2022, its internal reporting and reportable segments changed. It combined its U.S. and Canadian zones to form the North America zone as a result of previously announced organizational changes intended to advance and support its long-term growth plans by streamlining and synergizing its U.S. and Canadian businesses.
It then managed and reported its operating results through two reportable segments defined by geographic region: North America and International.
The company has reflected this change in all historical periods presented.
Kraft Heinz
During the year ended December 31, 2022, the company continued to experience increased raw material and supply chain costs, including sourcing, logistics and manufacturing costs, largely due to inflationary pressures, compared to the prior year.
Kraft Heinz now expects these costs to continue to rise and inflation to remain elevated through 2023.
While these costs have a negative impact on its results of operations, the company is currently taking steps to mitigate, and expects to continue to take steps to mitigate, the impact of this inflation through pricing actions and efficiency gains.
