Monday August 9, 2010

Kraft Posts Double-Digit Revenue Growth In Q2

Northfield, IL — Kraft Foods, Inc. reports net revenue growth of 25 percent for the second quarter and an increase of about 18 percent in U.S. snack revenue from the prior year.

Net revenues came in at $12 billion, 22 percent of which is credited to the company’s acquisition of Cadbury. Kraft says the strong earnings also reflect increased gross profit margins and significant brand-building investments in every region. Further, the company reports its U.S. snack net revenue came in at $1.5 billion for the quarter, up from $1.3 billion the previous year.

For Kraft Foods North America, net revenues increased 6.3 percent, reflecting a 6.9 percent impact from the Cadbury acquisition, the company says.

Investments in marketing and innovation in key brands such as Ritz, Triscuit, Trident Layers, Stride Shift, DentynePure and Oreo drove solid growth, Kraft reports. However, those gains were offset by declines caused by a weak consumer environment, reduced merchandising by a key customer, aggressive promotional activity by competitors and a negative impact of 0.5 percent from the shift of Easter-related shipments.