“The Kraft Heinz Company (NASDAQ:KHC) reported a small sales gain and a big GAAP loss in its earnings report for the fiscal fourth quarter of 2018 last night.
“Sales grew less than one single percentage point to $6.9 billion for the quarter. Losses were a staggering $10.34 per share.
“Kraft Heinz stock is down 27.4% as of 12:50 p.m. EST in response.
“That’s not the worst of it.
“Kraft blamed its big GAAP loss on a $15.4 billion impairment charge to earnings that wiped out what otherwise would have been a quarterly profit (“adjusted” earnings, said Kraft, were positive $0.84 per share — which is still down 7% year over year).
“On top of that, Kraft revealed that the SEC is investigating its “accounting policies, procedures, and internal controls related to its procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to its agreements with its vendors” — and apparently has been doing so since at least October 2018.”
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