The US food and beverage giant has also named a new CEO for its North American business, who will take over from the current CEO in January.
These updates were revealed alongside Kraft Heinz’s third-quarter financial results, which showed an increase in net sales but a decrease in volume and mix.
The international business of Kraft Heinz, encompassing all operations outside of North America, will now be structured into three units.
Europe and Pacific Developed Markets will oversee Kraft Heinz’s operations in Europe, Japan, South Korea, Australia, and New Zealand.
The second unit, West and East Emerging Markets, will include Latin America, Eastern Europe, and the Middle East.
The third unit, Asia Emerging Markets, will include Kraft Heinz’s businesses in Asia, excluding Japan and South Korea.
In addition, Pedro Navio, an executive within Kraft Heinz’s North American business, has been appointed as the president of the division.
Navio will succeed the current CEO in January. The current CEO, Miguel Patricio, will transition to the role of non-executive chair for the Oscar Mayer brand at the beginning of next year.
As part of the restructuring, Kraft Heinz will establish global leadership teams for its growth and omnichannel functions.
In the third quarter, Kraft Heinz reported a 1% increase in net sales to $6.57bn. On an organic basis, net sales rose 1.7%, but volume and mix declined by 5.4 percentage points.
Operating income decreased by 13.1% to $653m, while net income dropped by 41.7% to $254m.
Kraft Heinz’s adjusted EBITDA for the quarter was $1.57bn, representing an 11.9% year-on-year increase.
“Our third-quarter results showed net sales growth across our foodservice, emerging markets, and US retail platforms,” said Patricio. “We continue to focus on improving productivity and reinvesting in key areas such as marketing, technology, and research and development to drive ongoing success.”
Kraft Heinz is forecasting adjusted earnings per share in the range of $2.91 to $2.99 for the full year 2023, an increase from the previous range.
