Kraft Foods Group yesterday reported an increase in first-quarter profit, helped by improved gross margins and hedging gains, with earnings topping Wall Street estimates.
Despite that positive report, the packaged food giant's revenue declined and fell short of expectations due to the shift in timing of Easter shipments, the company said.
For the first quarter, the Illinois-based Kraft Foods posted net earnings of $513 million or $0.85 per share, compared with $456 million or $0.76 per share last year. Revenue stood at $4.4 billion, a 3.3% decrease from a year prior.
Tony Vernon, CEO of Kraft Foods Group, commented: “We continued to make steady progress during the first quarter of this year. We still have more work to do, but we’re confident that our focus on brand renovation, marketing excellence and total cost management will drive the profitable growth that both we and our shareholders expect.”
In its report, Kraft said the sales in segments such as refrigerated meals, beverages and meals & desserts were all flat.
Kraft paid its last quarterly dividend of $0.525 per share on 25 April, 2014. The company has not yet declared a dividend for the next quarter.
© 2014 - European Supermarket Magazine by Enda Dowling
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