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Kraft Q1 net income soars on Cadbury
Kraft Foods Inc has reported strong first quarter 2010 results driven by good operating momentum in every geography.
Kraft Foods Inc has reported strong first quarter 2010 results driven by good operating momentum in every geography. Volume/mix improved sequentially from the fourth quarter 2009 and contributed significantly to income growth and margin expansion for Kraft Foods’ base business.
“Our first quarter results are early evidence of our future potential in combination with Cadbury,” said Irene Rosenfeld, chairman and CEO. “We demonstrated strong momentum in our Kraft Foods’ base business, including high-quality top-line growth and strong operating gains. In addition, our Cadbury business delivered solid financial results.”
Rosenfeld continued: “Our integration is progressing extremely well. We moved quickly to name our leadership teams, and I’m pleased that about a third of our top 50 executives are from Cadbury. We’ve confirmed our synergy targets and the specific initiatives that will drive future margin expansion and accelerate our growth.”
Net revenues from continuing operations in the first quarter increased 26.0% to $11.3bn, including the favourable impact of 18.9 percentage points from the Cadbury acquisition, 4.2 percentage points from currency and a negative 0.4 percentage point impact from divestitures.
Operating income in the first quarter increased 2.6% to $1,206m, including favourable impacts of 6.4 percentage points from currency and 17.8 percentage points from Cadbury’s operations, partially offset by a negative 25.3 percentage point impact from acquisition-related costs and integration costs. Excluding these factors, Kraft Foods’ base business operating income increased 3.7% reflecting volume/mix gains and productivity improvements that were partially offset by a negative 10.4 percentage point impact due to the change in unrealised gains and losses from hedging activity.
Source: Kraft Foods Inc
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