Cadbury accounts for 90% of Kraft profit
Kraft has reported strong sales and profit increases in the first full quarter since it took over Cadbury.
Sales rose 25% to $12.3bn (£7.75bn) in the three months to 30 June, and Cadbury accounted for 90% of the gains.
Net profits were up 13.3% to $937m (£590.1m), compared with $827m (£521m) in 2009.
The results have been boosted by Kraft’s £11.5bn takeover of Cadbury in February.
Kraft says the results reflect “significant brand-building investments” in every region.
In Europe, revenue increased 34.1%, of which 31.8% came from the Cadbury acquisition.
Kraft says it increased its advertising in Europe but overall marketing, administration and research costs fell 42.2% to $2,9bn (£1.8bn).
Irene Rosenfeld, Kraft chairman and CEO, says: “We’re making excellent progress on the Cadbury integration and expect to realize even greater synergies. In light of our strong earnings momentum, we will reinvest our 2010 upside to build our brands and to harmonize business practices.”
Since the hostile takeover, Kraft has downsized the Cadbury marketing function in the UK saying that while marketing will remain within the market “overall strategic direction” will come from a central marketing team in Zurich.
Cadbury UK marketing director Phil Rumbol has left the company, turning down a role in Kraft’s Zurich offices.
Only 12 of the 17 members of Cadbury’s chief executive’s committee have chosen to stay with new owners Kraft.
