Kraft Heinz Co (KHC)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	4,572,000	3,634,000	3,460,000	2,128,000	3,070,000
Revenue	US$ in thousands	25,669,000	25,743,000	23,232,000	24,638,000	24,040,000
Operating profit margin		17.81%	14.12%	14.89%	8.64%	12.77%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $4,572,000K ÷ $25,669,000K
= 17.81%

The operating profit margin of Kraft Heinz Co has shown fluctuations over the past five years. In 2023, the operating profit margin improved significantly to 17.81%, indicating that the company was able to generate a higher percentage of operating profit from its revenue compared to the previous year. This may be attributed to effective cost management, improved operational efficiency, or growth in revenue.

In 2022 and 2021, the operating profit margin was relatively stable at 14.12% and 14.89% respectively, suggesting consistency in the company's ability to generate operating profit in relation to its revenue during those years.

In 2020, the operating profit margin dropped to 8.64%, indicating a decrease in the proportion of operating profit generated from revenue. This could be a result of increased costs, lower revenue, or other operational challenges faced by the company during that period.

In 2019, the operating profit margin was 12.77%, showing a moderate decline compared to the previous year. This decrease may have been influenced by various factors such as changes in pricing strategies, input costs, or market conditions.

Overall, the trend in Kraft Heinz Co's operating profit margin reflects varying levels of profitability and efficiency in converting revenue into operating profit over the past five years. It would be crucial for the company to monitor and analyze these fluctuations to make informed decisions and strategies for sustainable financial performance in the future.