Kraft Heinz completes internal probe into its
procurement practices
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 [June 08, 2019]
(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.
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 33% so far this year,
rose about 3% 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.
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.
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A Heinz Ketchup bottle sits between a box of Kraft macaroni and
cheese and a bottle of Kraft Original Barbecue Sauce on a grocery
store shelf in New York March 25, 2015. REUTERS/Brendan McDermid/File
Photo
"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.
(Reporting by Nivedita Balu in Bengaluru; Editing by James Emmanuel)
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