Kraft Foods has reported an increase in first-quarter earnings as price increases and an earlier Easter than last year boosted sales.

Kraft yesterday (3 May) reported a 1.8% increase in net earnings to US$819m for the three months to the end of March.

Operating income was up 2.7% at $1.69bn, although margins dipped from 13.1% in last year’s first quarter to 12.9%. 

However, underlying operating margin, which excludes costs linked to restructuring and Kraft’s plan to split in two later this year, increased 0.2 percentage points to 14.1%.

Net revenue increased 4.1% to $13.1bn. On an organic basis, revenue increased 6.5% on the back of price increases and higher volumes, which were boosted by the shift of Easter sales into the first quarter.

“Our first quarter gave us a great start to the year,” CFO David Brearton said. “We continue to expect 2012 organic net revenue growth of approximately 5% and operating EPS growth of at least 9% on a constant-currency basis.”

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Chairman and CEO Irene Rosenfeld said Kraft was “on track” to create “two industry-leading companies” by the end of the year.

Kraft’s split, announced last year, will lead to the formation of a North American grocery business called Kraft Foods Group and a global snacks company, which is set to be named Mondelez International.

Click here for the full statement from Kraft.

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now