Kraft hails “solid performance” as net profit falls
Kraft Foods said it posted a “solid performance in every geography” for the third quarter, despite net profit falling 8%.The company last week (4 November), posted US$760m in net profit, down from $826m in the same quarter of the previous year.
However sales were up 26.2% for the quarter to US11.9bn, as the company benefited from its recent Cadbury acquisition.
In its North American operations, revenue was up 9.3%, including 7.8% from the acquisition, totalling $5.8 billion. Higher prices due to higher input costs accounted for 3.1% of the change.
Revenue in its European division increased 29%, including a 36% impact from Cadbury and an 8.7% drop on currency fluctuations to US$5.8bn. Emerging market operations generated $3.3 billion, a 69.8% increase, with Cadbury adding 66.1% and currencies having a 3.7% negative impact.
Kraft chairman and CEO Irene Rosenfeld said: “We had another good quarter, and we’re executing well. Our global growth strategy of focusing on snacking and Power Brands gives us a clear path to top-tier performance. The Cadbury integration has proceeded smoothly and quickly, and we’re already benefiting from significant cost synergies. I remain confident that we will achieve our goals for 2010 and accelerate our growth in 2011.”
The company confirmed its guidance for combined organic net revenue growth in a range of 3- 4% and an operating EPS of at least $2.00.
For Kraft’s full earnings statement click here and check back later for further insight into the manufacturer’s results.
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