Kraft Heinz has filed its annual report for 2018 after a delay of more than three months, caused by accounting irregularities that led the company to misstate earnings and other financial data.
The 2018 report shows a loss of $10.25 billion for the year on net sales of $26.27 billion. Much of the loss is attributable to a write-down of some of its main brands, including Kraft and Oscar Mayer, by $15.4 billion, causing the stock price to drop more than 30% in February.
The delay in the annual report filing was caused by accounting errors that included booking costs or rebates from suppliers ahead of when they actually happened. The company attributed this to misconduct by employees in the procurement division, several of whom have been discharged. The situation led Kraft Heinz to restate quarterly financials going back to 2016, although the adjustments amounted to less than 1%.
The write-down in February led to an investigation by the Securities and Exchange Commission that is still ongoing. The company reportedly also is being investigated by the office of the U.S Attorney for Northern Illinois.
