Betsy Holden and Roger Deromedi, Co-CEOs of branded food giant Kraft Foods, revealed yesterday [Thursday] that the company’s performance continues to be strong, and that Kraft is on target to achieve its earnings projections for the year.
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Holden and Deromedi spoke at the annual Consumer Analyst Group of New York (CAGNY) Conference, held in Scottsdale, AZ. They reaffirmed that Kraft continues to project strong performance in 2002, with worldwide volume up 3% to 4% and diluted earnings per share up 14% to 16% to a range of US$2 to US$2.05. Risks to this projection do however include the impact of currency and economic weakness in certain international markets.
Deromedi and Holden noted that a key to Kraft’s success is driving growth through innovation, particularly through new products, world-class marketing, developing markets and acquisitions. New-product revenues hit a record US$1.1bn in 2001.
Developing markets and acquisitions represent significant opportunities for Kraft, according to Holden and Deromedi.
In 2001, Kraft grew developing market volumes 11%. Recent acquisitions include Stollwerk confectionery in Central and Eastern Europe, It’s Pasta Anytime shelf-stable pasta meals in the US, Nova Brasilia coffee in Bulgaria and Romania, Ennasr coffee in Morocco, and Lanes Biscuits in Australia. Kraft will continue to pursue attractive acquisitions, both in North America and internationally, especially those that add to the company’s momentum in its four growth platforms of snacks, beverages, convenient meals and health & wellness.
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By GlobalDataHolden and Deromedi reported that the company continues to drive strong productivity savings, targeting 3.5% of cost of goods sold in 2002. They also noted that the company is on track with the Nabisco integration and will be delivering its targeted synergy savings.
