Global food manufacturer Kraft Heinz has reported lower sales and profitability for both the fourth quarter and full year 2025, while announcing a $600 million investment programme aimed at restoring profitable growth and strengthening brand performance across key categories.

The company said full-year net sales fell 3.5% to $24.9 billion, with organic net sales down 3.4%, reflecting volume declines in North America and developed international markets. Gross profit margin decreased to 33.3%, while adjusted operating income declined 11.5% to $4.7 billion, driven primarily by inflation in commodities and manufacturing costs, increased marketing and R&D expenditure, and unfavourable volume mix.

Operating results were significantly affected by non-cash impairment losses totalling $9.3 billion, resulting in an operating loss of $4.7 billion for the year. Despite this, cash generation remained strong, with operating cash flow rising 6.6% to $4.5 billion and free cash flow increasing 15.9% to $3.7 billion.

For metal packaging suppliers, Kraft Heinz’s continued investment capacity and stable cash generation remain notable, particularly given the company’s extensive global portfolio of canned foods, sauces, and ready meals.

Fourth-quarter net sales declined 3.4% to $6.4 billion, with organic sales down 4.2% due largely to lower volumes across all regions, especially in coffee, processed meats, and frozen products. Adjusted operating income fell 15.9% to $1.2 billion, while adjusted EPS decreased 20.2% to $0.67. North America remained the weakest region, with quarterly sales down 5.4%, highlighting ongoing demand softness in several core categories.

Chief executive Steve Cahillane, who joined the business recently, said the company’s immediate priority is returning to profitable growth by focusing resources on core operations. As part of that strategy, Kraft Heinz has paused work related to a previously announced business separation.

“We believe it is prudent to pause work related to the separation and fully focus our resources on executing our operating plan,” Cahillane said.

The $600 million investment will be directed across marketing, sales, research and development, and product quality improvements, alongside selective pricing actions. The company expects the programme to accelerate momentum in its “Taste Elevation” portfolio and support recovery in its US business.

Kraft Heinz expects organic net sales in 2026 to decline between 1.5% and 3.5%, including an estimated 100-basis-point headwind from US SNAP programme changes. Constant-currency adjusted operating income is forecast to fall 14%–18%, reflecting the additional investment spending and tougher year-on-year comparisons.

Adjusted EPS is projected to be between $1.98 and $2.10 for the year, with free cash flow conversion expected at approximately 100%.

While short-term volume pressures may affect demand across certain packaged food segments, the company’s renewed investment in product quality and brand support could provide longer-term stability for packaging suppliers, including metal packaging producers serving canned foods, condiments, and ready meals.

Kraft Heinz returned $2.3 billion to shareholders during 2025 through dividends and share repurchases, underlining continued balance-sheet strength despite the earnings decline.