Kraft Heinz Co (KHC)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,683,000 | 4,572,000 | 3,634,000 | 3,460,000 | 2,128,000 |
| Revenue | US$ in thousands | 25,795,000 | 25,669,000 | 25,743,000 | 23,232,000 | 24,638,000 |
| Operating profit margin | 6.52% | 17.81% | 14.12% | 14.89% | 8.64% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,683,000K ÷ $25,795,000K
= 6.52%
The operating profit margin of Kraft Heinz Co has shown fluctuations over the years. In December 2020, the operating profit margin was at 8.64%, demonstrating the company's ability to generate profits from its core operations. This margin increased significantly to 14.89% by December 2021, indicating improved operational efficiency and cost management.
Although there was a slight dip in the operating profit margin to 14.12% by December 2022, the company maintained a relatively strong performance in profitability. The operating profit margin further improved to 17.81% by December 2023, reflecting positive growth and potentially better pricing strategies or cost controls.
However, there was a notable decline in the operating profit margin to 6.52% by December 2024, which could be a sign of challenges in managing operating expenses or changing market conditions. It is essential for Kraft Heinz Co to closely monitor and address the factors affecting its operating profit margin to sustain and enhance its financial performance in the future.
Peer comparison
Dec 31, 2024