Using the Q4 and full-year fiscal 2024 earnings press release for KHC (Exhibit 99.1 to the Feb-12-2025 8-K), construct the complete reconciliation from GAAP net income to company-reported Adjusted EBITDA for FY2024, state the Adjusted EBITDA margin, isolate the equity-award compensation expense excluded in that definition, and compute the basis-point gap between the reported margin and a cash-adjusted margin that removes the equity-comp add-back.
A real, unedited run·KHC·Sonnet 4.6·6 tool calls·1m 13s·$0.341
Replaying the run · 20 steps · 73s compressed
▸ THINKING
01 Thinking
02 Narration
03 Tool call · list_filings
04 Result · list_filings ✓ ok · 6,064 ch
05 Thinking
06 Narration
07 Tool call · get_filing_section
08 Tool call · get_filing_section
09 Result · get_filing_section ✓ ok · 8,898 ch
10 Result · get_filing_section ✓ ok · 11,375 ch
11 Thinking
12 Narration
13 Tool call · calculator
14 Result · calculator ✓ ok · 18 ch
15 Tool call · calculator
16 Result · calculator ✓ ok · 18 ch
17 Tool call · calculator
18 Result · calculator ✓ ok · 16 ch
19 Thinking
20 Final emit
TL;DR
Adjusted EBITDA is a company-defined number — the only way to trust it is to rebuild the bridge from the release and see exactly what was added back.
From Schedule 17 of Kraft Heinz's Q4 FY2024 earnings press release (Exhibit 99.1 to the Feb-12-2025 8-K, accession 0001637459-25-000006), the agent rebuilt the full GAAP net income → company-reported Adjusted EBITDA bridge, read off the Adjusted EBITDA margin, isolated the equity-award compensation add-back, and recomputed a “cash-adjusted” margin — reporting the basis-point gap between the two.
Sources (1) — every cited figure below traces to one of these
Every step the agent took — reasoning, tool calls, raw results. Click any cited figure to open it in the source filing.
01Thinking
The user wants me to find KHC's Q4 and full year fiscal 2024 earnings press release (filed February 12, 2025 as Exhibit 99.1 to Form 8-K) and construct the complete reconciliation from GAAP net income to Adjusted EBITDA for fiscal year 2024. Let me search for this filing.
Key dates:
- Filing date: February 12, 2025
- Period ended: December 28, 2024
- Vantage date to use: 2026-03-01 (but filing was Feb 12, 2025, which is before March 1, 2026, so it's valid)
Now I need to locate the 8-K filing for KHC.
02Narration
I'll look up KHC's Q4 2024 earnings 8-K filing to find the GAAP-to-Adjusted EBITDA reconciliation.
**Tip:** Use `get_filing_section` with a section_id and accession_number above to read section content.
05Thinking
Found the Q4 FY2024 8-K filing (accession: 0001637459-25-000006, filed 2025-02-12). Now let me read the GAAP reconciliation and the income statement sections for the full-year figures.
06Narration
Found the Q4 FY2024 8-K (filed 2025-02-12, accession 0001637459-25-000006). Now I'll pull the GAAP reconciliation and income statement sections in parallel.
07Tool call·get_filing_section
{
"ticker": "KHC",
"section_id": "earnings_gaap_reconciliation",
"accession_number": "0001637459-25-000006",
"max_chars": 60000
}
08Tool call·get_filing_section
{
"ticker": "KHC",
"section_id": "earnings_income_statement",
"accession_number": "0001637459-25-000006",
"max_chars": 20000
}
09Result·get_filing_section✓ ok · 8,898 ch
# KHC — earnings_income_statement
8-K (filed 2025-02-12)
~2,126 words | Chunks 1-1 of 1
**Table 3** (income_statement, scale not detected)
20 rows × 16 columns
For the Three Months Ended
For the Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
Net sales
$
6,576
$
6,860
$
25,846
$
26,640
Cost of products sold
4,331
4,543
16,878
17,714
Gross profit
2,245
2,317
8,968
8,926
Selling, general and administrative expenses, excluding impairment losses
898
1,017
3,616
3,692
+ 15 more rows− collapse
Goodwill impairment losses
77
—
1,638
510
Intangible asset impairment losses
1,310
—
2,031
152
Selling, general and administrative expenses
2,285
1,017
7,285
4,354
Operating income/(loss)
(40)
1,300
1,683
4,572
Interest expense
227
229
912
912
Other expense/(income)
(29)
121
(85)
27
Income/(loss) before income taxes
(238)
950
856
3,633
Provision for/(benefit from) income taxes
(2,370)
193
(1,890)
787
Net income/(loss)
2,132
757
2,746
2,846
Net income/(loss) attributable to noncontrolling interest
1
—
2
(9)
Net income/(loss) attributable to common shareholders
$
2,131
$
757
$
2,744
$
2,855
Basic shares outstanding
1,203
1,225
1,210
1,227
Diluted shares outstanding
1,207
1,232
1,215
1,235
Basic earnings/(loss) per share
$
1.77
$
0.62
$
2.27
$
2.33
Diluted earnings/(loss) per share
1.76
0.61
2.26
2.31
**Table 4** (income_statement, scale not detected)
Net Sales
Currency
Acquisitions and Divestitures
Organic Net Sales
Price
Volume/Mix
North America
$
4,968
$
(12)
$
—
$
4,980
International Developed Markets
913
3
—
910
Emerging Markets(a)
695
(32)
—
727
Kraft Heinz
$
6,576
$
(41)
$
—
$
6,617
North America
$
5,167
$
—
$
—
$
5,167
International Developed Markets
948
—
—
948
Emerging Markets(a)
745
16
18
711
Kraft Heinz
$
6,860
$
16
$
18
$
6,826
**Table 6** (income_statement, scale not detected)
Net Sales
Currency
Acquisitions and Divestitures
Organic Net Sales
Price
Volume/Mix
North America
$
19,543
$
(27)
$
—
$
19,570
International Developed Markets
3,535
13
—
3,522
Emerging Markets
2,768
(101)
12
2,857
Kraft Heinz
$
25,846
$
(115)
$
12
$
25,949
North America
$
20,126
$
—
$
—
$
20,126
International Developed Markets
3,623
—
—
3,623
Emerging Markets
2,891
77
67
2,747
Kraft Heinz
$
26,640
$
77
$
67
$
26,496
**Table 9** (income_statement, scale not detected)
10 rows × 12 columns
Adjusted Operating Income
Currency
Constant Currency Adjusted Operating Income
North America
$
1,318
$
(2)
$
1,320
International Developed Markets
140
2
138
Emerging Markets
89
(1)
90
General corporate expenses
(162)
1
(163)
Kraft Heinz
$
1,385
$
—
$
1,385
+ 5 more rows− collapse
North America
$
1,349
$
—
$
1,349
International Developed Markets
146
—
146
Emerging Markets
90
3
87
General corporate expenses
(196)
—
(196)
Kraft Heinz
$
1,389
$
3
$
1,386
**Table 11** (income_statement, scale not detected)
10 rows × 12 columns
Adjusted Operating Income
Currency
Constant Currency Adjusted Operating Income
North America
$
5,111
$
(6)
$
5,117
International Developed Markets
537
9
528
Emerging Markets
321
(10)
331
General corporate expenses
(609)
—
(609)
Kraft Heinz
$
5,360
$
(7)
$
5,367
+ 5 more rows− collapse
North America
$
5,050
$
—
$
5,050
International Developed Markets
522
—
522
Emerging Markets
376
13
363
General corporate expenses
(651)
—
(651)
Kraft Heinz
$
5,297
$
13
$
5,284
**Table 17** (income_statement, scale not detected)
I have all the data I need from the earnings press release filing for KHC Q4 FY2024 (filed 2025-02-12, period ended December 28, 2024). Let me extract and calculate the key figures.
From **Schedule 17** (the complete GAAP Net Income → Adjusted EBITDA reconciliation for the full year ended December 28, 2024):
| Line Item | Amount ($M) |
|---|---|
| Net income/(loss) | $2,746 |
| Add: Interest expense | $912 |
| Add: Other expense/(income) | ($85) |
| Add: Provision for/(benefit from) income taxes | ($1,890) |
| = Operating income/(loss) | $1,683 |
| Add: Depreciation and amortization (excluding restructuring activities) | $948 |
| Add: Divestiture-related license income | ($54) |
| Add: Restructuring activities | $27 |
| Add: Unrealized losses/(gains) on commodity hedges | ($19) |
| Add: Impairment losses | $3,669 |
| Add: Equity award compensation expense | $109 |
| = **Adjusted EBITDA** | **$6,363** |
Now I'm calculating the Adjusted EBITDA margin by dividing the $6,363M figure by FY2024 net sales of $25,846M, which comes out to approximately 24.62%. So the cash-adjusted Adjusted EBITDA comes to $6,254M after subtracting the $109M equity award expense, which gives a margin of about 24.20%.
The difference between the company-reported margin of 24.62% and the cash-adjusted margin of 24.20% is roughly 42 basis points, with the company-reported figure being higher since it includes the equity compensation add-back. Now I'm walking through the earnings statement reconciliation from Schedule 23, starting with net income and adding back interest, other expenses, and taxes to get to operating income, then layering in depreciation, amortization, and various adjustments like restructuring charges and impairment losses to build toward Adjusted EBITDA.
Continuing with equity award compensation of $109M to reach the final Adjusted EBITDA of $6,363M, and I'm verifying the calculation step by step. Now I'm computing the Adjusted EBITDA margin relative to revenue and also calculating a cash-adjusted version by excluding the equity compensation expense.
12Narration
I have all the data from Schedule 17 (Table 23). Now I'll compute the precise margins.
13Tool call·calculator
{
"expression": "6363 / 25846 * 100"
}
14Result·calculator✓ ok · 18 ch
24.618896541050837
15Tool call·calculator
{
"expression": "(6363 - 109) / 25846 * 100"
}
16Result·calculator✓ ok · 18 ch
24.197167840284763
17Tool call·calculator
{
"expression": "109 / 25846 * 10000"
}
18Result·calculator✓ ok · 16 ch
42.1728700766076
19Thinking
Now I have all the numbers I need. Let me structure the complete answer.
**Complete GAAP Net Income → Adjusted EBITDA Reconciliation (FY2024, year ended December 28, 2024) - from Schedule 17:**
| Line Item | $M |
|---|---|
| Net income/(loss) | $2,746 |
| + Interest expense | $912 |
| + Other expense/(income) | ($85) |
| + Provision for/(benefit from) income taxes | ($1,890) |
| = Operating income/(loss) | $1,683 |
| + Depreciation and amortization (excl. restructuring) | $948 |
| + Divestiture-related license income | ($54) |
| + Restructuring activities | $27 |
| + Unrealized losses/(gains) on commodity hedges | ($19) |
| + Impairment losses | $3,669 |
| + Equity award compensation expense | $109 |
| = **Adjusted EBITDA** | **$6,363** |
With net sales of $25,846M, that gives an Adjusted EBITDA margin of 24.62%. Now I need to calculate the cash-adjusted figure by removing the $109M equity award compensation expense add-back.
Subtracting that gives me $6,254M, which translates to a cash-adjusted margin of 24.20%—a difference of about 42 basis points. This data comes from Schedule 17 in the Q4 FY2024 earnings release filed in February 2025.
A real, unedited AI agent + MetricDuck run (Sonnet 4.6, MetricDuck MCP only), captured from the vals.ai Finance-Agent v2 benchmark (a full-credit pass). Curation is limited to the short summary; the trace itself — thinking, tool calls, results, and final answer — is exactly as captured. Every cited filing in the trace links to its source. See the method →
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