The Kraft Heinz Company (NASDAQ:KHC) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET


The Kraft Heinz Company (NASDAQ:KHC) Q4 2019 Earnings Conference Call - Final Transcript


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Good day. My name is Katherine, and I'll be your operator today. At this time, I would like to welcome everyone to the Kraft Heinz Company's Fourth 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 fourth quarter and full-year 2019 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 will 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 good morning, everyone. I think it's appropriate to start today's update by recognizing that 2019 was a very difficult year for Kraft Heinz, for our employees, our Board and our stakeholders, yet it has also been a period of new understanding and new change, and we are confident that our journey to a stronger, more agile Kraft Heinz has already begun.

We are seeing the beginning of stabilization in our second half trend bend on EBITDA performance. We believe the essential ingredients for our turnaround are now in place. People with deep experience in key roles to drive functional excellence, perspective on where consumers are going and how we can win, productivity initiatives with detailed jobs to be done, and a financial profile with strong free cash flow going forward.

Today's dividend declaration is confirmation of our Board's confidence in our turnaround plan and our ability to reposition Kraft Heinz for sustainable long-term growth and returns.

We are clear on what we need to achieve in 2020 and have greater visibility on delivering a stronger foundation and rebuilding business momentum as we exit the year. We have also developed a better understanding of future consumers, a long-term vision for the Company, and the strategic plan that we are excited about, and we look forward to sharing with you in more detail in early May in New York.

I know many of you were expecting a March date versus a May date for the unveiling of our strategy. But with Carlos Abrams-Rivera coming in as our new head of the US zone, I wanted to make sure we have his full input as we detail our multiyear plans for the bottom up, before we present it to you.

For today, I