Kraft Heinz: to restate two years of earnings

(CercleFinance.com) - Kraft Heinz said it will restate two years of earnings because of "certain misstatements" contained in its financial statements for 2016 and 2017, adding fuel to Wall Street's concerns.


While the food giant does not believe that the misstatements constitute a "quantitatively material misstatement," it has determined that it is appropriate to correct them due to the qualitative nature of the matters, including the number of transactions, suppliers and employees involved.

As a reminder, Kraft Heinz did not file its annual report for fiscal year 2018 on time, due to the length of time required to carry out its investigation.

In February, the company said it received a subpoena from the SEC related to the accounting policies of its procurement area. As a result, the group identified that several employees in the procurement area engaged in misconduct.

The shares seem to be weathering the storm fairly well in pre-market trading on Monday (-1.9%), although they have lost over 24% year-to-date.

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