US food giant Kraft has revealed that it expects to save US$100m this year through the cost savings and synergies generated by its acquisition of Nabisco.
Kraft said worldwide volumes increased by 34.6% during the third quarter as a result of the buyout, and operating profit rose 17.5%. The figures were driven by higher sales volume from new products and developing markets, financial savings, and lower interest charges.
The company posted a 8.2% drop in net profits however, to US$503m, after taking a US$37m hit during the quarter as part of the anticipated costs of Nabisco’s integration.
Co-CEO of the group, Roger Deromedi, explained: “The integration of Nabisco is proceeding smoothly and meeting expectations. We’re starting to see the power of joint promotions and cross-branding initiatives.”
Kraft added that if it had owned Nabisco for the entire financial year, it would be unveiling a 3% rise in worldwide volumes, compared to the third quarter of 2000, and a 9.8% rise in operating income to US$1.5bn.