KHC · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Kraft Heinz Co · 2026-08-05 · Importance 49 · Surprise 32

Second-quarter 2026 gross profit was $2,028 million, down $155 million, or 7.1%, from $2,183 million in the second quarter of 2025. Gross margin declined to approximately 32.4% from 34.4% year over year as cost of products sold increased to $4,234 million from $4,169 million despite lower sales. Six-month gross profit was $4,247 million in both 2026 and 2025, while six-month gross margin increased to approximately 34.5% from 34.4%.

Key facts

• For the three months ended June 27, 2026 the total amounts presented in the condensed consolidated statements of income in which derivative effects were recorded were $4,234 million source
• For the six months ended June 27, 2026 the total amounts presented in the condensed consolidated statements of income in which derivative effects were recorded were $8,062 million source
• Gross profit for the Obligor Group for the six months ended June 27, 2026 was $2,928 million. source
• Cost of products sold for the six months ended June 27, 2026: $8,062 million. source
• Cost of products sold for the six months ended June 28, 2025: $8,104 million. source
• Gross profit for the six months ended June 27, 2026: $4,247 million. source
• Gross profit for the six months ended June 28, 2025: $4,247 million. source
• Based on valuation at June 27, 2026 we expect transfers to net income/(loss) of existing losses on interest rate cash flow hedges and cross-currency fair value hedges during the next 12 months to be insignificant source