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Kraft's Q2 Net Income Rises 13%

Posted On: 8/13/2010

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Kraft Foods, Kraft Vending and OCS, Oreo, Cadbury, Trident, Dentyne, vending foods, vending, vending machine, vending machine business, vending machine suppliers

NORTHFIELD, IL -- Kraft Foods Inc. posted second-quarter net profit of $937 million, up 13.3% from $827 million in the year-ago period. Boosted by its acquisition of British confectionery giant Cadbury last February, Kraft saw quarterly net revenue surge 25.3% to $12.3 billion.

In North America, sales climbed 6.3% to almost $6.2 billion, driven by strong demand for new Trident and Dentyne gums. Sales grew 73% in developing markets, led by chocolate in India, Oreo cookies in China and gum in Latin America.

On an organic basis, which excludes the impact of exchange rate fluctuation, acquisitions and divestitures, Kraft's net revenue increased 2.2%.

Looking ahead, the food giant increased its estimate for cost savings from the Cadbury integration to at least $750 million from $675 million, and raised the anticipated cost of merging the two companies to approximately $1.5 billion from $1.3 billion.

Kraft lowered its organic net revenue growth forecast to 3% to 4%, in part because Cadbury distributors carried higher inventories in some markets than expected. Kraft also said rising commodity prices such as cocoa, sugar and wheat, will impact expenses.