American food giant Kraft Foods, which is acquiring British candy-maker Cadbury, today said its fourth quarter profits trebled at $710 million, driven by increased sales in the developing markets, against $178 million in the year-ago period.
Net revenues rose 3.2 per cent to $11 billion in the fourth quarter and include favorable impact of 3.2 per cent from currency and negative 0.4 per cent impact from divestitures.
Kraft's net revenues from developing markets rose by 11.2 per cent in Q4, driven by strong growth in volume/mix and higher price levels.
The Kraft statement said, "The combination of Kraft Foods and Cadbury is expected to provide the potential for meaningful revenue synergies over time from investments in distribution, marketing and product development."
"2009 was a strong finish to our three-year turnaround and gave us excellent momentum heading into 2010. Despite the challenging economic environment, we generated exceptional profit and free cash flow," Kraft Foods Chairman and Chief Executive Officer Irene Rosenfeld said.
"We continue to benefit from investments in our iconic brands. This is driving volume/mix gains and leveraging our cost structure to deliver sustainable, profitable growth. And our top line reflected our resolve to avoid chasing unsustainable, promoted volume," Rosenfeld added.
