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Kraft Heinz Company (NASDAQ: KHC) – Kraft Heinz Details New strategic transformation plan

Kraft Heinz Co. (NASDAQ: KHC) on Tuesday detailed a new strategic transformation plan targeting about $ 2 billion in cost cuts through 2024.

Operating model: The core element of Kraft Heinz’s transformation is a new operating model with five elements, including:

  • Confirmation of employees as the most important resource;
  • Shrinkage of the portfolio from 55 individual categories to six consumer-driven platforms;
  • Creating a new supply chain that is faster, customizable and gives greater visibility
  • Development of new strategic partnerships and
  • Reinvestment of efficiency gains for better fuel growth.

Long-term financial goals: Kraft set a number of long-term economic goals as part of its transformation. These include organic net sales growth of 1

% to 2%, adjusted EBITDA growth of 2% to 3% and adjusted EPS growth of 4% to 6% with greater than or equal to 100% free cash flow conversion.

Changing the ‘Mind-Set’ Previous mistakes resulted in Kraft losing market share in key categories to stores with lower prices. The company registered write-downs of DKK 2.9 billion. $ In July after reducing the value of its assets by more than $ 16 billion. $ Last year.

Kraft’s new goals stem from management’s recognition that previous decisions were “too short-term,” Kraft CEO Miguel Patricio told The Wall Street Journal. The company is now changing this mindset.

Kraft’s stock traded around $ 32.12 per share. Share at the time of publication.

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