The Kraft Heinz Company reported that it reduced its capital expenditures 22.4% in 2020.
With a global presence in the food industry, The Kraft Heinz is the name of the company resulting from the merger between Kraft Foods and Heinz.
Of the company‘s total capital expenditures last year, $ 318 million corresponded to the United States, $ 212 million to the International area, $ 29 million to Canada, and $ 37 million to General Corporate Expenses.
In the case of the net cash used for investing activities, it totaled $ 522 million for the year ended December 26, 2020, compared to the net cash provided by the investing activities of $ 1.5 billion for the year ending December 28, 2019.
Above all, this change was due to the proceeds from the Natural Cheese Transaction of Canada and the Heinz India Transaction received in 2019, as well as lower income from company’s net investment hedges in 2020 compared to 2019.
The latter was partially offset by cash paid to acquire Primal Nutrition, LLC in 2019 and lower capital expenditures in 2020 compared to 2019.
The company expects capital expenditures in 2021 to increase to $ 900 million.
However, due to the Covid-19 pandemic, Kraft Heinz’s estimates of its capital expenditures are subject to change.
In 2020, the five largest customers in its United States segment accounted for approximately 50% of the net sales of the United States segment, the five largest customers in its International segment accounted for 18% of the net sales of the International segment, and the five largest Its largest Canadian customers accounted for 76% of the Canadian segment’s net sales.
On July 2, 2015, through a series of transactions, the merger of Kraft Foods Group, Inc. with a wholly owned subsidiary of HJ Heinz Holding Corporation was consummated.
At the close of the merger in 2015, Heinz was renamed The Kraft Heinz Company, and H. J. Heinz Company changed its name to Kraft Heinz Foods Company.
Prior to the 2015 Merger, Heinz was controlled by Berkshire Hathaway Inc. and 3G Global Food Holdings, LP.