Kraft Heinz completes internal probe into its procurement practices

News June 8, 2019 No Comments

Kraft Heinz completes internal probe into its procurement practices

REUTERS: Kraft Heinz Co said on Friday the numbers it restated last month were accurate following completion of an internal investigation, but that the matter was under review by the U.S. Attorney’s Office.

Last month, the company said it would restate financial reports for a near three-year period to fix errors that resulted from lapses in procurement practices by some of its employees.

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Kraft Heinz said it expects to report its delayed first-quarter results on or before July 31.

The company’s shares, which have fallen nearly 33per cent so far this year, rose about 3per cent in after hours trading.

The packaged foods company, in a long overdue annual regulatory filing on Friday, said a United States Attorney’s Office for the Northern District of Illinois is reviewing this matter.

Kraft Heinz had disclosed a SEC subpoena in February. Thereafter, the company initiated an investigation into the procurement practices.

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As a result of the internal investigation and material weaknesses spotted, Kraft Heinz said it is taking steps to improve internal policies and would strengthen internal control in financial reporting.

“We are pleased that Kraft Heinz is returning to a path of normalization,” Kraft Heinz Chairman Alex Behring said.

Kraft Heinz also said it has elected Joao Castro-Neves, a former Anheuser-Busch InBev executive, to its board.

In April, the company named Miguel Patricio, a former marketing executive at AB InBev, as its chief executive officer.

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(Reporting by Nivedita Balu in Bengaluru; Editing by James Emmanuel)

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