The Kraft Heinz Company

No hard financial results such as revenue, EPS, or gross margin were stated in the transcript. On the operating side, management said Q2 consumption was about 2.5% lower, July consumption was about minus 1%, and first-half market share was down 30 bps, improving to about down 20 bps in the most recent weeks. Andre Maciel said the company increased its cash conversion expectation for the year, kept free cash flow at essentially the same dollar amount as originally committed, paid down $1.9 billion of debt in the quarter, and paid another $1 billion after quarter-end. He also said the company completed a refinancing of an expensive debt maturity. Guidance commentary pointed to sequential improvement in Q3 and Q4, with 2026 framed as the base year and no expected wraparound of investments into next year.

Steve Cahillane framed the quarter as evidence that the company’s incremental investments are starting to work, especially in categories and brands where Kraft Heinz has focused first. He said the inflation outlook for next year is manageable and that the company likes its setup for 2027, with momentum building in consumption and share. He also stressed that the company is investing from a position of strength and remains open to portfolio moves that would add shareholder value.

Andre Maciel focused on execution, saying Q2 consumption was down about 2.5%, but July improved to about minus 1% and he expects a gradual step-up in Q3 and a further sequential improvement in Q4. He pointed to share progress, noting the first half was down 30 bps and recent weeks were closer to down 20 bps, and said the company is seeing ROI progress in both marketing and promotions. On the financial side, he said free cash flow is essentially unchanged versus the original commitment, cash conversion expectations were increased, $1.9 billion of debt was paid down in the quarter, another $1 billion was paid after quarter-end, and the company completed a successful refinancing of an expensive maturity.

Analysts pressed on whether next year’s inflation and investment cadence mean 2026 is really the margin trough, and management said the inflation outlook is manageable and that productivity remains the first line of defense. Multiple questions focused on consumption and share, and management answered that the underlying trends are improving, with early signs in Capri Sun Hydrate, PowerMac & Cheese, Ore-Ida Shapes, desserts, and cold cuts. Analysts also questioned whether the guidance midpoint implies a weaker second half, and Andre Maciel said that once you normalize for Q1 snowstorm benefits and Q2 shipment phasing, underlying performance in the second half is actually improving versus the first half.