The Kraft Heinz Company - 3 things to know about the company

It is also listed on the NASDAQ stock exchange.

Here are 3 things to know more about the company

Kraft Heinz has a strong portfolio of brands. Currently, they have 6 brands that are doing USD 1 billion net sales.

This includes brands like kraft mac & cheese, Philadelphia cream cheese, Lunchables, Heinz ketchup, Velveeta, and Oscar Mayer.

They have a 97% House Hold Penetration (HHP). This means that 97% of US families are using a Kraft Heinz product!

In 2019, the company made a goodwill impairment of USD 7.3 billion.

Companies record goodwill on their books when they buy a business for more than the value of its hard assets, such as property and equipment. The buyer must test the fair value of its reporting units each year and, if that figure is less than the amount on the balance sheet, impair the goodwill.

Kraft Heinz’s charge reduced the company’s overall goodwill balance by nearly 17% to $36.2 billion as of Dec. 29, according to regulatory filings. It was part of a total impairment of $15.9 billion for 2018 that included an $8.7 billion write-down to its intangible assets, particularly the Kraft and Oscar Mayer brands.

The topline for the company has been flattish for the past 7 years, while net profit has been impacted by the multi-year impairments.

Would you invest in Kraft Heinz? The company is cheap by historical valuation.

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