Kraft Heinz Co's net income halved in the first six months the year as the packaged food maker disclosed well over $1 billion in charges and writedowns in results delayed by an investigation into its procurement practices.
The company wrote down the value of some of its units, including its U.S. refrigerated business, by about $744 million. It also booked an impairment charge of $474 million in the second quarter to write down the value of six brands, including Velveeta and Cool Whip.
Kraft Heinz's earnings report was delayed as it restated financial reports for a near three-year period after an internal investigation into lapses in procurement practices by some of its employees.
The company's shares fell 6% in premarket trading on Thursday. The stock has lost a third of its value since 21 February, when the company posted a surprise quarterly loss, disclosed an SEC investigation into its accounting practices, and wrote down the value of its iconic Kraft and Oscar Mayer brands by over $15 billion.
Net income attributable to the company's shareholders fell to $854 million, or 70 cents per share, in the six months ended 29 June, from $1.76 billion, or $1.43 per share, a year earlier.
Excluding items, the Chicago-based company earned $1.44 per share, compared with $1.89 a year earlier. Kraft Heinz said net sales fell about 5% to $12.37 billion.
"The level of decline we experienced in the first half of this year is nothing we should find acceptable moving forward," Kraft Heinz's new chief executive, Miguel Patricio, said.
Patricio, a 30-year marketing veteran from Anheuser-Busch InBev, was named to the role in April.