Kraft Heinz Co (KHC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 854,000 | 3,642,000 | 2,961,000 | 1,696,000 | 1,025,000 |
| Revenue | US$ in thousands | 25,795,000 | 25,669,000 | 25,743,000 | 23,232,000 | 24,638,000 |
| Pretax margin | 3.31% | 14.19% | 11.50% | 7.30% | 4.16% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $854,000K ÷ $25,795,000K
= 3.31%
The pretax margin of Kraft Heinz Co has shown fluctuations over the years based on the provided data. The pretax margin increased from 4.16% as of December 31, 2020, to 7.30% as of December 31, 2021, indicating an improvement in profitability. Subsequently, the pretax margin continued to increase significantly to 11.50% as of December 31, 2022, and further to 14.19% as of December 31, 2023, reflecting a strong upward trend.
However, there was a notable decline in the pretax margin to 3.31% as of December 31, 2024, which reversed the previous positive trend. This decrease in pretax margin raises potential concerns about the company's profitability efficiency in that particular year.
Overall, the pretax margin trend suggests that Kraft Heinz Co experienced both periods of growth and challenges in maintaining profitability during the years analyzed. It is essential for the company to closely monitor and manage its operational and financial performance to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024