Kraft Foods Group booked a 13% rise in earnings during the third-quarter, as the group benefited from its “leaner” post-spin structure and spent more on advertising.
Reporting its first set of results following its spin-off from global snacks giant Mondelez International, the US grocery business said profit totalled US$470m, up from $417m a year earlier.
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Net revenue in the period rose 3% to $4.6bn, while organic net revenue was up 3.2%.
Kraft said the gain was led by the contribution from newly-launched products. However, the company conceded that a significant proportion of the increase was also driven by retailers stocking up on product prior to the spin. As a result, as retailers work through their inventories, Kraft said sales would be flat to down in the fourth quarter.
Kraft backed its outlook for fiscal 2013, which includes revenue growth “in line” with the North American grocery market.
“Our third quarter results demonstrate the power of our brands, our people and our innovation,” said Tony Vernon, CEO. “We have an excellent foundation as a new and independent Kraft, and we’re confident we have what it takes to fulfil our mission of becoming the best food and beverage company in North America.”
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