Kraft Heinz Co., which has now received two subpoenas related to its procurement practices, plans to restate earnings and says it found evidence of employee misconduct that increased the cost of products sold.

The effects of the restatements for 2016, 2017, and part of 2018 for supplier rebates and other misstatements are expected to be less than 2 percent in each year on adjusted earnings per share, the packaged-food giant said in a regulatory filing Monday.

The company said it didn't find any evidence of misconduct by senior managers in its investigation, which is now complete. It delayed filing its annual report earlier this year because of the probe, and said it would do so as soon as possible. Kraft Heinz said it is taking remedial steps, including personnel actions and changing some internal controls, to prevent such misconduct in the future. Shareholder Warren Buffett, who helped finance the merger that created Kraft Heinz, said Monday that he's confident in the company.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.