2 of the great surnames in American manufacturing...... Kraft & Heinz...... in some serious trouble.
Two bond rating services downgraded Kraft Heinz bonds to junk status after the company's fourth-quarter and full-year financials showed a continuing decline in sales. As a result, the value of the company's long-term bonds sunk.
Some insurers, pension funds and other mutual funds with strict restrictions against owning junk bonds may now be forced to sell the debt, spurring additional losses from the bonds.
The ratings services Fitch said the company may need to divest a sizable portion of its business in order to reduce its debt.
(https://www.foodprocessing.com/industrynews/2020/kraft-heinz-bonds-junk-status/)
It was just a year ago that this news was released:
Kraft Heinz Co shares fell to a record low on Friday a day after the food company disclosed a $15 billion write-down on its marquee brands, raising concern that years of rigorous cost cutting have eroded the value of its Kraft cheeses and Oscar Mayer deli meats.
Kraft’s revenue growth has stagnated in the years since it merged with Heinz as consumers shun older, established brands for newer products, cheaper private label brands and non-processed and organic food.
(https://www.reuters.com/article/us-kraft-heinz-stocks/kraft-heinz-shares-fall-28-percent-after-writedown-dividend-cut-idUSKCN1QB1J9)
Not good news at all. I have no doubt their full team is scrambling to figure out a way to right the ship.
Grace & Peace & Love to you all -
Matt
p.s. and from January 2017:
How Kraft Heinz Plans to Build a New Global Food Giant
https://fortune.com/longform/kraft-heinz-merger-3g-capital/
Two bond rating services downgraded Kraft Heinz bonds to junk status after the company's fourth-quarter and full-year financials showed a continuing decline in sales. As a result, the value of the company's long-term bonds sunk.
Some insurers, pension funds and other mutual funds with strict restrictions against owning junk bonds may now be forced to sell the debt, spurring additional losses from the bonds.
The ratings services Fitch said the company may need to divest a sizable portion of its business in order to reduce its debt.
(https://www.foodprocessing.com/industrynews/2020/kraft-heinz-bonds-junk-status/)
It was just a year ago that this news was released:
Kraft Heinz Co shares fell to a record low on Friday a day after the food company disclosed a $15 billion write-down on its marquee brands, raising concern that years of rigorous cost cutting have eroded the value of its Kraft cheeses and Oscar Mayer deli meats.
Kraft’s revenue growth has stagnated in the years since it merged with Heinz as consumers shun older, established brands for newer products, cheaper private label brands and non-processed and organic food.
(https://www.reuters.com/article/us-kraft-heinz-stocks/kraft-heinz-shares-fall-28-percent-after-writedown-dividend-cut-idUSKCN1QB1J9)
Not good news at all. I have no doubt their full team is scrambling to figure out a way to right the ship.
Grace & Peace & Love to you all -
Matt
p.s. and from January 2017:
How Kraft Heinz Plans to Build a New Global Food Giant
https://fortune.com/longform/kraft-heinz-merger-3g-capital/