Kraft Foods Q3 net drops 39%, remains interested in Cadbury
Press Trust of India / New York Nov 04, 2009, 13:52 IST
US food major Kraft Foods has reported a 39.5 per cent drop in the third quarter net earnings at $824 million, but said it remains interested in acquiring British confectionery firm Cadbury.
On the company's possible offer for Cadbury, its chairman and CEO Irene Rosenfeld said: " We remain interested but will maintain a disciplined approach."
Kraft has just few days left either to make a formal announcement for maker of popular brand Dairy Milk or walk away from the deal.
Net earnings attributable to Kraft stood at $824 million in the September quarter as compared with $1.36 billion in the year-ago period, the company said in a statement.
Kraft's net revenue declined by unfavourable impact of currency and divestitures to $9.83 billion in the third quarter from $10.41 billion in the same period last fiscal.
Excluding acquisition, organic net revenues grew 0.5 per cent during the quarter, which was the significant contributor to income growth and margin expansion.
Kraft said organic net revenue would grow by two per cent in 2009, while previously it expected to grow by three per cent.
The change in outlook primarily reflects lower-than-seen list prices as well as weakening economic conditions in certain countries in Western and Eastern Europe. Besides, the company has raised its profit guidance.
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