Cadbury Acquisition Drives Profit at Kraft Foods

 Breaking News
  • KK Foods Plans £5.5 Million Expansion KK Fine Foods, a leading frozen food manufacturer based at Deeside in Wales, is set to expand and diversify with support from the Welsh Government, creating an additional 40 new...
  • Nestlé Launches Fund to Boost Packaging Innovation Nestlé has announced that it will invest up to SFr2 billion (€1.86 billion) to lead the shift from virgin plastics to food-grade recycled plastics and to accelerate the development of...
  • Bosch Packaging Technology is Now Syntegon Syntegon Technology is the new name for Bosch Packaging Technology, following the sale of the former Bosch division. Headquartered in Waiblingen, Germany, Syntegon Technology’s business focus is on intelligent and...
  • Nestlé Launches New KitKat Gold in the UK Nestlé has unveiled a unique addition to its biggest confectionery brand – the new KitKat Gold. KitKat Gold is a combination of trademark crispy wafer on a smooth milk chocolate...
  • 789 Food and Drink Acquisitions in 2019 2019 broke records again for the number of food and drink transactions around the world, with 789 registered on the Zenith Global mergers and acquisitions database, an average of 15...

Cadbury Acquisition Drives Profit at Kraft Foods

Cadbury Acquisition Drives Profit at Kraft Foods
August 06
12:22 2010

The acquisition of Cadbury has helped Kraft Foods to report higher than expected second quarter profit despite a decline in its North American sales. Cadbury contributed 91% of the 25% rise in the US-based food and beverage giant’s net revenues to $12.3b during the quarter.

Kraft Foods’ operating income increased 16.8% to $1.70b, including a favourable impact of 17.8 percentage points from Cadbury’s operations, partially offset by a negative 11.0 percentage point impact from integration program and acquisition-related costs.

Irene Rosenfeld, chairman and chief executive of Kraft Foods.

“We delivered strong earnings in the quarter and the first half of the year, despite difficult conditions in many markets that tempered top-line growth,” says Irene Rosenfeld, chairman and chief executive of Kraft Foods. “We’re making excellent progress on the Cadbury integration and expect to realise even greater synergies. In light of our strong earnings momentum, we will reinvest our 2010 upside to build our brands and to harmonise business practices. We will deliver at least $2.00 of operating EPS this year while building a stronger foundation to achieve top-tier growth in 2011.”

Kraft Foods has increased its estimate of total cost synergies expected from the integration of Cadbury from $675m to at least $750m and has accordingly adjusted the total costs of the integration programme from approximately $1.3b to $1.5b.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events


find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here