Kraft Heinz completes internal investigation

Kraft Heinz says it has completed its internal investigation into its procurement area and assessment of internal controls, and the company continues to cooperate with the U.S. Securities and Exchange Commission (SEC) in its investigation.

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Leowolfert, Bigstock
Leowolfert, Bigstock

Kraft Heinz says it has completed its internal investigation into its procurement area and assessment of internal controls, and it continues to cooperate with the U.S. Securities and Exchange Commission (SEC) in its investigation.

In February, Kraft Heinz revealed that it received a subpoena from the SEC associated with an investigation into the company's accounting policies, procedures, and internal controls related to its procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to its agreements with its vendors.

As a result of the internal investigation and material weaknesses identified, the company, in a press release, stated that it is taking actions to improve internal policies and procedures and to strengthen internal control over financial reporting.

Annual report filed

The Kraft Heinz Company, after a delay, has filed with the Securities and Exchange Commission (SEC) its annual report on Form 10-K for the year ended December 29, 2018.

In March, the company received a standard notice from NASDAQ, stating that it failed to file the report in a timely manner. Therefore, the company was not in compliance with NASDAQ Listing Rule 5250(c)(1).

“We are pleased that Kraft Heinz is returning to a path of normalization,” Alex Behring, chairman of the Kraft Heinz board of directors, said in the same press release. “The adjustments to correct prior year misstatements are in line with the preliminary amounts disclosed in our Form 8-K filed on May 6, 2019.”

Quarterly report to be filed by end of July

The company, which received another notice in May for not filing its quarterly report on Form 10-Q for the fiscal quarter ended March 30, 2019, stated that it expects file that report with the SEC on or before July 31, 2019.

The two notices did not have any immediate effect on the listing or trading of Kraft Heinz common stock.

Kraft Heinz, the parent company of Oscar Mayer and Lunchables, is the sixth largest turkey company in the United States. According to the WATTAgNet Top Poultry Companies Database, Kraft Heinz slaughtered an estimated 332 million pounds of live turkeys in 2018, a decrease of 33 million pounds – or about 9 percent – from 2017.

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