Kraft-Heinz shares fall on news that the company will delay its annual filing and restate earnings
Scott Olson / Getty Images
- Kraft-Heinz shares fell slightly in early trading Monday as the company delayed its 2018 annual filing, citing the need to restate earnings for 2016, 2017 and 2018.
- The restatements were driven by "employee misconduct" in the procurement division and will affect earnings by about 2%.
- Warren Buffett, whose company Berkshire Hathaway is the largest shareholder of Kraft-Heinz, said that he remains confident of the company.
- Watch Kraft-Heinz trade live.
Kraft-Heinz, the beleagured ketchup maker, faced further stock price volatility as the company announced that it would delay its 2018 annual filing and restate results for 2016, 2017 and 2018.
View all Offers
- 18% OFF
Redmi 9A (Nature Green, 2GB RAM, 32GB Storage) | 2GHz Octa-core Helio G25 Processor | 5000 mAh Battery₹ 6999₹ 8499Buy On
OnePlus Nord 2 5G (Blue Haze, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
OnePlus Nord 2 5G (Gray Sierra, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 19% OFF
Redmi Note 10 (Aqua Green, 4GB RAM, 64GB Storage) -Amoled Dot Display | 48MP Sony Sensor IMX582 | Snapdragon 678 Processor₹ 12999₹ 15999Buy On
- 18% OFF
Redmi 9A (Midnight Black 2GB RAM 32GB Storage) | 2GHz Octa-core Helio G25 Processor | 5000 mAh Battery₹ 6999₹ 8499Buy On
"While we don't believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements."The company, which is controlled by Brazilian private equity firm 3G and Berkshire Hathaway, previously announced a $15 billion write-down of goodwill and an SEC investigation into its accounting practices. Shares plunged 25% to all-time lows on the news.
3G is known for its "zero-based budgeting," which drives significant cost-cutting throughout the company.Berkshire Hathaway is the largest shareholder of the company, with a stake of over $10 billion at current market prices. "The company has my confidence," said Berkshire CEO Warren Buffett in an interview with CNBC as news of the company's restatements emerged. Previously, Buffett has said that he "overpaid" for the stake.The company noted in its 8-K filing that the investigation was "substantially complete."
Kraft-Heinz are down 25% year to date.
- Today is the last day of Rolex Rings’ ₹731 crore IPO with a price band of ₹880-900
- Punjab to bring Bill to earmark welfare budget for SCs in proportionate to their population
- High Pressure car washer price in India
- Best boAt headphones to buy in India
- Nothing ear (1) review – clean sound, transparent design for the win