Kraft Foods has posted a rise of nearly 4% in profits for its second quarter despite rising commodity costs.
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The food and beverage giant said higher prices helped offset rising input costs as it saw net profit increase to US$732m to 30 June, up from $707m for the same period last year.
Excluding items, profit beat analysts’ estimates by 8 cents.
Second-quarter net revenue increased 21.4% to $11.2bn from $9.2bn from the previous year.
Reported operating income in the quarter increased 27.1% from 2007 to $1.5bn.
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By GlobalDataIrene Rosenfeld, chairman and CEO said: “Our business continues to strengthen in a challenging operating environment, and performance is exceeding our expectations. Our investments are driving stronger top-line growth and we are now seeing that play through in improved profitability. I expect our year-over-year results to improve further in the back half of 2008 as we continue to reinvest in our brands and reduce our costs.”
Kraft has raised its earnings per share guidance to at least $1.92 versus at $1.90 previously to reflect “better-than-expected growth from operations”.
The company also raised its full-year sales target from growth of 5% to 6%.
