PITTSBURGH (AP) — Kraft Heinz released its second quarter earnings report delayed by accounting problems and revealed continued fall-out related to those issues on top of weak sales.
The company that makes Oscar Mayer hot dogs, Kool-Aid, Heinz ketchup and Velveeta took charges in excess of $1 billion in the first half due in part to the “perceived risk” to the value of the company during a very rough year in which its stock has been cut in half. Shares of The Kraft Heinz Co. tumbled another 14% to an all-time low Thursday.
The company, created in a 2015 merger crafted by billionaire Warren Buffett and Brazilian private equity firm 3G Capital, had been trying to regain its footing and follow vast changes in what people eat and how they perceive the company’s most iconic brands.
Then, early this year, Kraft Heinz disclosed an investigation into its accounting practices by federal regulators and said it would slash the value of its Oscar Mayer and Kraft brands by more than $15 billion.