The Kraft Heinz Company (NASDAQ:KHC) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 08:30 am ET


The Kraft Heinz Company (NASDAQ:KHC) Q3 2019 Earnings Conference Call - Final Transcript


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Good day. My name is Joel. And I'll be your operator today. At this time, I would like to welcome everyone to The Kraft Heinz Company's Third Quarter 2019 Earnings Conference Call.

I will now turn the call over to Chris Jakubik, Head of Global Investor Relations. Mr. Jakubik, you may begin.

Christopher Jakubik

Hello, everyone, and thank you for joining our business update. We'll begin today's call with an overview of our third quarter and nine months results, as well as an update on our path forward from Miguel Patricio, our CEO; and Paulo Basilio, our CFO. And then we'll open the lines for your questions.

Please note that, during our remarks today, we will make some forward-looking statements that are based on how we see things today. Actual results may differ due to risks and uncertainties, and these are discussed in our press release and our filings with the SEC.

We'll also discuss some non-GAAP financial measures during the call today. These non-GAAP financial measures should not be considered a replacement for, and should be read together with GAAP results. And you can find the GAAP to non-GAAP reconciliations within our earnings release.

Now let's turn to Slide 3, and I'll hand it over to Miguel.

Miguel Patricio

Thank you, Chris, and hello, everyone. On our previous call, I promised to be candid with you from the start and to update you on our progress along the way. I also highlighted some potential risks to the second half performance. Three months on, and we are getting to deeply understand our business. That business is on a better footing because we are increasing visibility and control of our costs. The team is making excellent progress and we are gaining confidence in our path forward. We are not where we believe we can be, but we are excited with the evolution we had in the third quarter and what we have ahead of us. This comes from directing our efforts to three work streams, stabilizing the business as we execute the 2019 plan; setting our near-term transformation in motion; and establishing a true north through our enterprise strategy work. As we committed to you earlier, we will give you a detailed plan coming out of the enterprise strategy work early next year. But we do want to share the progress we have made and set early high-level observations with you today.

In terms of delivering our 2019 plan and how we are running the business day-to-day, our performance improved from the first half of the year, and we are seeing signs of continuous improvement taking hold. As I said on our last call, my Number 1 focus is our people and developing the team because it's our people that will deliver continuous improvement and the turnaround of Kraft Heinz. Since our last call, we have made a number of moves to enhance our leadership team, both at the global level and within business units. For instance, I named Nina Barton to a new role, Chief