Kraft Foods reports Q3, raises guidance
NORTHFIELD, Ill. — Net revenues for Kraft Foods realized an 11.5% boost, the company reported in its third-quarter earnings release.
Third-quarter net revenues totaled $13.2 billion for the period ended Sept. 30. Additionally, diluted earnings per share also saw a strong gain, rising nearly 21% to 52 cents, compared with the year-ago period.
For its North America business, Kraft said net revenues rose 4.4% to $6.1 billion, thanks to improved marketing and successful new products enabled the continued implementation of broad-based pricing. Kraft also said that its segment operating income also rose 3.3% — including a negative 3.6 percentage point impact from the Starbucks CPG business and a negative 0.5 percentage point impact from Integration Program costs — which the company attributed to a strong focus on cost management.
The company revised its guidance for 2011, projecting that organic revenue guidance for the year will be 6% (up from at least 5%), while operating EPS guidance was projected to be at least $2.27, up from at least $2.25.
“We’ve raised our outlook for the year due to the strong business momentum in each of our geographies,” Kraft Foods EVP and CFO David Brearton said. “While we expect strong operating momentum to continue, our earnings guidance excludes any potential impact from currency in the fourth quarter, as recent volatility has made such forecasts difficult.”