Kraft Q2 revenues up 9.3pc
Dubai, August 20, 2009
Kraft Foods, which sells in 150 countries worldwide, has reported a rise of 9.3 per cent in organic revenue from developing markets, including Middle East and Africa, Central and Eastern Europe, Asia Pacific and Latin American countries.
The increase was driven by solid gains in most regions, mainly fueled by power brands such as Tang powdered beverages, Kraft cheeses, Philadelphia cream cheese and Oreo biscuits.
The company’s overall operating income grew by 7.6 per cent in the second quarter of 2009 as compared to the same period last year.
Organic net revenue growth reflected the impact of cost-driven pricing actions taken in 2008, positive volume/mix and the benefits of incremental investments in brand building, said a statement.
Income growth and margin expansion were driven by lower costs due to the completion of the 2004-2008 Restructuring Program, improved product mix and lower fixed manufacturing costs.
Kraft Foods Middle East and Africa contributed to these results by continuing its trend of strong growth, driven by successful regional investments in cheese, powdered beverages and snacks, and favourable product mix.
Increased local production of beverage, cheese, and biscuits, together with optimal cooperation with distributors, JV partners and suppliers also contributed to growth in the quarter.
“Despite a, challenging consumer environment and the slow down of some categories, Kraft Foods Middle East and Africa has extended into the second quarter its solid start of the year with power brands such as Tang, Kraft cheese, Oreo, Toblerone and Philadelphia performing well, and cost savings reinvested into building brands”, said Patrick Satamian, vice-president and area director, Kraft Foods, Middle East & Africa.
“Kraft Foods products are household names in the region owing largely to our established presence, which we have built over 50 years. We have made strategic investments in the region to enhance our consumer appeal which have been yielding results and accelerating our overall growth.”
“We will continue to drive down costs, improve brand equity and profitability and reinvest in our brands to enhance growth. Throughout the MEA region, we have put in place the right organisation structure, the right people and the right strategies, which will allow us, together with our partners, to continue the momentum established in 2008,” concluded Satamian. – TradeArabia News Service
More Miscellaneous Stories
- Death penalty sought for Bahrain terrorists
- Girl, 9, dies after fall from 8th floor in Abu Dhabi
- Lebanese café brand opens Dubai outlet
- Bahrain poultry firm told to step up safety
- Customer dies in Bahrain cafe brawl
- Bahraini boys hurt while planting bombs
- Philips, Ericsson launch LED street lighting
- DuBiotech to set up first Halal safety lab
- Jotun to supply coatings for Makkah Station
- Raytheon wins $655m Kuwait Patriot deal
- Alwaleed Foundation lights up 3 Saudi villages
- Poultry farms strike may trigger shortages in Bahrain
- Oman seals Victoria food security pact
- Saudi woman, 80, donates $133m to charity
- New Saudi clamp on energy drinks
- Outrage follows Bahrain killer bomb
- Improvised explosive device used in Bahrain attack
- 3 policemen killed in Bahrain blast
- Dammam-Al Ahsa train service starts
- Egypt wheat supplies enough to last until June
- Expat killed at Saudi workers' holding facility
- 80 global speakers for Doha summit on family
- Restaurant runs up $47,555 phone bill in 4 days
- NZ minister to visit Gulf states
- Public-private tie-ups ‘vital for agri growth’
- China firm wins solar power project in Amman
- 15,000 attend Bahrain garden show
- Omani firms shine at top food expo
- Bahrain to set up national food company
- Dozens hurt in gas leak at plant near Doha