Kraft Foods Group Reports Fourth-Quarter And Full-Year 2014 Results

PRESS RELEASE

NORTHFIELD, IL -- Feb. 12 --Kraft Foods Group, Inc. (NASDAQ: KRFT) today announced financial results that reflected the impact of significant pricing actions to offset record-high commodity costs, mixed execution across the business portfolio as well as a number of factors, which are not expected to repeat, that influenced both the fourth quarter and full year.

"While there were some positive developments in the fourth quarter, we did not deliver to our potential in 2014, with the macro environment and our execution affecting our results," said Kraft Chairman and CEO John T. Cahill. "I believe our brands and our people are an unbeatable combination, but as we look at 2015 and beyond, we need to leverage those strengths against a plan that accelerates the pace of change, improves execution and puts Kraft on a clear path to long-term, sustainable growth."

Fourth Quarter Financial Summary

Net revenues grew 2.2% and organic net revenues were up 3.4%. Organic growth was driven by positive net pricing of 1.9 percentage points to offset higher input costs, as well as volume/mix gains of 1.5 percentage points from growth in the Refrigerated Meals, Exports and Canada businesses.

An operating loss of $614 million and EPS loss of $0.68 were driven by a non-cash loss of $1,364 million, or $1.43 per diluted share, from market-based impacts to post-employment benefit plans.

See full release here.