Kraft Foods Group was formed last October after split from Cadbury owner Mondelez

Kraft Foods Group was formed last October after split from Cadbury owner Mondelez

Kraft Foods Group has reported a drop in third-quarter sales as the US grocery giant lapped a period last year when retailers ran up inventories ahead of the company's split from Mondelez International.

However, the Oscar Mayer meats and Planters snack nuts manufacturer saw profits increase 7% as it booked gains on employee benefit plans, which also prompted the company to raise its forecast for annual profits.

The company booked a 4.2% fall in net revenues to US$4.39bn for the quarter to 28 September on the back of lower volumes and a fall in prices.

Volumes were down three points thanks to the impact of comparisons with last year's third quarter, when Kraft shipped stocked to customers ahead of the spin-off from Mondelez.

"The unusual nature of last year's Q3 results obscures our steady progress in remaking the best brand portfolio in the food and beverage industry," said Kraft CEO Tony Vernon.

However, he added: "There's no question it's a difficult environment for our consumers and customers. We remain confident that our disciplined approach to growing our brands and driving cost savings will enable us to continue delivering the consistent returns our shareholders expect."