US food giant Kraft Foods defied high raw material prices to post a 22% rise in its third-quarter profit.

For the three months ending 30 September, the company’s net earnings attributable to Kraft Foods were US$922m, up from $754m the same period last year.

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Kraft’s revenue rose nearly 12% to $13.23bn while operating income was $1.7bn, up from $1.5bn in the same-year period.

Irene Rosenfeld, chairman and CEO of Kraft, hailed price increases, investment in marketing and products and growth in all geographies for the strong results.

“Our investments in marketing and new products continue to drive high quality growth and solid market shares,” she said.

Yesterday (2 November) the company raised its full-year profit forecast to $2.27 per share, up from $2.25 per share, despite predicting higher costs in packaging, energy, transportation and ingredients, and remains confident about splitting into two listed companies – a North American grocery business and an international snacks firm.

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Rosenfeld added: “Together with substantial savings opportunities, we expect to deliver top-tier results in 2011 and remain on track to launch two industry-leading companies with strong operating momentum in the coming year.

“We’re well under way in designing the frameworks for each organisation. We expect to announce the leadership for each company by the end of the year.”

In North America net revenues increased 4.4% and operating income increased 3.3%, while net revenues increased 16.1% in Europe. Operating income in Europe was flat because of $55m in costs associated with combining the Kraft Foods and Cadbury businesses. Developing markets, however, was the star performer. Net revenues increased 20.3% and operating income increased 57.3%.

Shares in the company rose 0.23% to $34.64 at close of trading following the third quarter profits announcement.

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