Global food company Kraft Foods Inc has reported a fall in net earnings in its second quarter ended 30 June 2005, to $472m, compared with $698m a year ago, blaming high commodity costs for the reduction.
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Net revenue rose to $8.334bn, compared with $8.091bn in the year earlier period.
“We continued to make progress against our sustainable growth plan in the second quarter with strong contributions from new products, product mix improvements, higher marketing spending and cost restructuring efforts,” said Roger K. Deromedi, CEO of Kraft Foods. “These initiatives and increased prices have helped to offset the impact of higher commodity costs this year, which have been greater than anticipated. While these price increases have had a short-term impact on our volume growth, we continue to support our businesses through increased consumer marketing spending, building brand value for the long-term.”
