Kraft Foods released its third quarter results Wednesday. The net income for the quarter has risen by 13%.
The company’s brands include Miracle Whip, Maxwell House coffee and Oscar Mayer products. The Kraft Foods Group Inc. has other snack brands that fall under its other company Mondelez International, which has Nabisco, Chips Ahoy and Oreo. The two companies split with the intention of letting each company focus on their product portfolios, a move aimed at accelerating their individual growth.
Kraft CEO said that the company would continue to innovate and prune its product extensions. In 2011, Kraft introduced MiO drops, which are drops that when put in water make flavored drinks. The rise in net income was attributed to the new products such as MiO that contributed to 2.6% growth in the volume of the quarter. Other products that contributed to the lifted performance include Oscar Mayer cold cuts and Lunchables. The company’s older products like Planters, Jell-O and Capri Sun however, saw declines in volumes.
The earnings per share for the year ending September 30th stood at 79 cents per share and earnings of $470 million. These figures are up from last year’s numbers of an earnings per share of 70 cents per share and earnings of $417 milion. The rise was also a result of increased advertising for the year. Revenue for the Northfield-based food maker rose 3% and stood at $4.6 billion. The firm’s gross profit increased 16%, largely due to easing in the costs of ingredients for its products. The split with Mondelez also resulted in lower effective tax rates that contributed to the offsetting of restructuring costs.
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