Kraft Foods posts revenue fall
Kraft Foods, The US owner of brands including Milka and Toblerone, says it will remain “disciplined” over a possible takeover bid for Cadbury, as the company posts a fall in revenue.
The company reported a 5.7% drop in sales to $9.8bn (£5.9bn) in its third quarter trading statement and revised its full year growth expectations to 2% down from 3%.
The company revised its guidance for 2009 diluted earnings per share upwards to $1.97 (£1.19) from $1.93 (£1.16), which it says reflects further investment in marketing to drive growth.
Irene Rosenfeld, chairman and CEO of Kraft says the company continues to “build operating and financial momentum” despite difficult trading conditions adding that volume sales, profit margin and cash flow are strengthening as the company “successfully executes growth plans”.
Beverages and Convenient meals were the only business segments to see growth. Drinks sales increased 1.5%, boosted by strong performance of the Capri Sun brand.
Its convenience meals segment saw 5% growth boosted by the stay at home trend and pizza brands including DiGiorno and Oscar Mayer Deli Fresh.
Regarding a possible bid for Cadbury, Rosenfeld says in Kraft’s third quarter trading statement: “We remain interested but will maintain a disciplined approach.”
The US based company has until 9 November to make a second offer for the UK based confectionery company, or it must wait a further six months.
Kraft is reported to have obtained a $9bn (£5.4bn) loan from a group of nine banks to back its bid for Cadbury.
