The world’s second largest food company posted earnings that beat analyst views on Thursday, but revenue fell short of what Wall Street had been expecting.
Kraft Foods’ base business growth increased by 8.7 percent from volume/mix gains and 1.7 percent from increased price levels. The accounting calendar change for certain operations in Asia-Pacific increased growth rates by 1 percent.The company’s base business priority brands collectively grew more than 17 percent, and in the Asia-Pacific region, organic revenues grew over 10 percent due to strong volume/mix gains. These mix gains were found in China, Australia and the Philippines, and included the benefit of the accounting calendar change for certain operations.
Priority brands collectively grew nearly 30 percent, led by Oreo cookies and Tang powdered beverages. Cadbury growth reflected gains in gum sales across Latin America and chocolate in Asia, particularly India, which were partially offset by soft gum category trends in Japan, South Africa and Mexico.