Kraft Heinz will restate its financials for the last few years due to misconduct in its procurement department that distorted the cost of products sold, the company said in a stock filing.
Statements from 2016, 2017 and part of 2018 will be adjusted due to changes in the effect of supplier rebates and other misstatements, according to a filing with the Securities and Exchange Commission. Kraft Heinz estimated that the changes to earnings will be less than a percentage point. The company said the misconduct did not involve senior management.
The news is the latest embarrassment for the industry giant, which was formed by the merger of Kraft Foods and Heinz in 2015. News that the SEC was investigating the company’s procurement practices broke in February, and its stock price has plunged 25% this year.