Kraft Foods Group has booked a mixed set of first-quarter results, with higher sales and operating profit failing to offset restructuring charges, which dented the bottom line.
The US grocery company said yesterday (2 May) first-quarter sales were up 2.1% to US$4.54bn. Volume and mix gains totalled 2.4 percentage points, partly offset by a 0.3% drag from lower pricing.
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Operating income was up 9.2% year-on-year, climbing to to $809m. Kraft said operating profit was booted by improved productivity, overhead cost savings, and product mix and volume growth.
However, the group booked a decline in net earnings, which dropped 5.6% to US$456m. The company said costs associated with its restructuring programme, initiated following its split from international snack firm Mondelez International, rose to $119m in the quarter, up from $64m in the corresponding period of last year.
