US food group Kraft Heinz ended Friday (22 February) with a record low share price which saw some US$16bn wiped off its market value.
Its shares were down 27% on the day to $34.95 as investors reacted badly to the company’s financial announcements.
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Kraft Heinz revealed late last week that it had suffered a $12.6bn fourth-quarter loss linked to a $15.4bn brand writedown.
It also revealed it has faced a US Securities and Exchange Commission investigation related to purchasing and accounting practices.
The Oscar Mayer hot dogs and cold cuts and Heinz ketchup and soup maker issued a robust defence of its strategy in a post-results release call with analysts, with Kraft Heinz chief executive officer Bernardo Hees saying: “We still believe strongly that our model is working and has a lot of potential for the future.”
Kraft Heinz said the writedown of its assets was primarily linked to its US refrigerated and Canadian retail reporting divisions, along with the Kraft and Oscar Mayer brands.
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By GlobalDataYesterday (24 February), news outlet CNBC, citing people familiar with the matter, said Kraft Heinz has hired investment bank Credit Suisse to review options for its Maxwell House coffee business, including a potential sale.
