In the first three months of 2012, Kraft Foods has realised growths in both turnover (+4.1%) and profit (+2%). In its last year before dividing itself in two separate entities, the group maintains its 5% turnover growth forecast.
Rising prices push sales higher
The American food giant saw higher prices (+5.5%) push its turnover to 13.1 billion dollar (almost 10 billion euro): the volume growth of 1% was only a small part of the company's organic growth of 6.5%. Most of Kraft's growth came, obviously, from the emerging markets, where sales rose by 8.5%. In Europe, the company's growth still was 4.5%, climbing to 3.23 billion dollar (2.4 billion euro).
These results allow Kraft to keep its forecasts on a 5% turnover growth, thus outperforming main competitor Kellogg: the cereal producers had torevise their forecasts downwards as sales in Europe fell way below expectations.
Last year as one company
Last August, the company announced its plans to break up into a global snack company and a North American food producer. The former, renamed Mondelēz, include brands like Milka, Philadelphia, Tuc and Lu and has a turnover of 24 billion euro. The latter, keeping the name of Kraft Foods, will earn 12 billion euro per year.