6 August 2010
US food giant Kraft has reported higher-than-expected first quarter profit, helped in part by its purchase of UK confectionery maker Cadbury.
Kraft said net profit was $937m (£590m), up from $827m in the same period a year earlier earlier.Net revenue rose 25.3% to $12.3bn, boosted by the addition of Cadbury, which it acquired in a controversial takeover at the beginning of the year.
Kraft was criticised for breaking pledges over Cadbury plant closures.
"Our first quarter results are early evidence of our future potential in combination with Cadbury," said Irene Rosenfeld, Kraft chairman and chief executive.
"We demonstrated strong momentum in our Kraft Foods' base business, including high-quality top-line growth and strong operating gains. In addition, our Cadbury business delivered solid financial results."
She also said that integration "was progressing extremely well" and that about one third of Kraft's top 50 executives are from Cadbury.After the report, Kraft shares rose 3.5% in after-the-bell trading on the New York Stock Exchange.