Kraft posts strong results as it integrates Cadbury
Kraft has reported a rise in revenue and profit posted for the first quarter of this year as the integration of Cadbury gets underway.
Kraft posted profits of $1.9bn (£1.3bn) during the period, up from $660m (£449.3m) for the same period last year, boosted by the sale of its frozen pizza business.
Total revenue grew 26% to $11.3bn (£7.7bn) while Kraft’s organic growth was up 3.3% and Cadbury’s was up 8.2%.
Earlier this year, Kraft bought Cadbury for $18.4bn (£12.5bn) after a hostile takeover battle.
Kraft CEO Irene Rosenfeld says: “I know that there are some concerns about our ability to maintain base business momentum while integrating Cadbury, but I suggest that our strong first-quarter results clearly demonstrate that we can in fact walk and chew Trident at the same time.
“The Cadbury acquisition is transformational for Kraft Foods, both strategically and financially, and this is reflected in our long-term outlook for the combined company. We have a strong track record of successfully integrating acquired companies and we are on track to continue that with Cadbury.”
Kraft Foods is reviewing its UK media planning and buying business, in an attempt to consolidate all its UK Cadbury and Kraft brands into one agency.
Marketing Week revealed last week that Cadbury’s marketing will remain in the UK, but Kraft officials in Europe will handle strategic decisions.
Cadbury UK marketing director Phil Rumbol has left the business after turning down a post on the leadership team in Zurich, which would have overseen the strategy for the chocolate business.
