Kraft Heinz brings in new CEO in bid to reinvigorate growth
Bernardo Hees will step down as CEO at Kraft Heinz on June 30, and will be succeeded by AB InBev exec Miguel Patricio. The change was “perhaps not a surprise in light of Kraft Heinz's recent performance,” said analysts at Bernstein.
“The company reported very weak profit results for Q4, 2018 and provided disappointing guidance for Q1 2019. In addition, Kraft Heinz announced a 36% dividend cut, a $15.4bn write-down of goodwill, and an SEC investigation into its procurement process, which has delayed the filing of its full year 2018 10K to date. This set of disappointing results dampened management's credibility with investors and might have prompted the Board to initiate the CEO change.
“By appointing Mr. Patricio as the new CEO, it appears that Kraft Heinz is doubling down on its efforts to reinvigorate the top line. Mr. Patricio had a track record of accelerating organic sales growth at AB InBev while serving as the CMO. His prior experience as the President of Asia Pacific of AB InBev might also enable him to explore more growth opportunities in emerging markets at Kraft Heinz.”