Kraft, the American food group that acquired Britain’s Cadbury for $19.5 billion this month, reported a 295 per cent rise in fourth-quarter profits as growth in developing markets offset stagnant US revenues.
The world’s second-biggest food group made $711 million in net earnings in the three months to December 31, up from $178 million in the same quarter in 2008.
Revenue rose 3.2 per cent to $11 billion, slightly below analysts’ expectations.
Organic net revenue, which excludes the impact of acquisitions, divestitures and currency, was up 10.4 per cent to $2.3 billion in developing markets as the company was able to bring in higher prices on products.
In the United States, cash-strapped consumers turned away from Kraft’s premium-priced products, such as Starbucks-branded coffee, resulting in