Kraft Foods said today (29 October) that third-quarter profits more than doubled on the back of the recent sale of its Post cereals business.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The US food giant booked net earnings of US$1.4bn for the three months to the end of September, compared to $596m a year earlier.
Kraft’s $1.7bn sale of the Post business to Ralcorp Holdings earlier this year boosted the figures. Excluding items, net earnings were down 5.9% to $658m.
However, the company decided to up its annual sales forecasts after seeing third-quarter revenue jump 19.4% to $10.46bn, thanks in part to the LU acquisition in Europe.
On an organic basis, revenue was up 7.1% as Kraft’s decision to raise prices on a number of products to offset higher input costs paid off. The result led Kraft to up its guidance for organic revenue growth from at least 6% to 7%.
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“Kraft had a strong quarter in a difficult environment,” said chairman and CEO Irene Rosenfeld. “Our operating momentum continued with solid top- and bottom-line contributions from all geographies. I am especially pleased that our volumes in the third quarter held up better than expected, despite significant cost-driven price increases and an unsettled economic environment.”
Kraft also reaffirmed its 2009 organic net revenue target of growth of at least 4%.
