Q3 operating income, net revenues rise for new Kraft Foods Group
Kraft natural cheese, Philadelphia and Velveeta drove strong volume/mix gains.
NORTHFIELD, Ill., Nov. 7, 2012 /PRNewswire/ -- Newly independent Kraft Foods Group, Inc. (NASDAQ: KRFT) today reported strong third quarter 2012 results with top- and bottom-line growth fueled by new products, increased investments in advertising and consumer spending, and significant productivity gains.
"Our third quarter results demonstrate the power of our brands, our people and our innovation," said Tony Vernon, CEO of Kraft. "We have an excellent foundation as a new and independent Kraft, and we're confident we have what it takes to fulfill our mission of becoming the best food and beverage company in North America."
Q3 financial summary
Net revenues in the third quarter grew 3.0 percent to $4.6 billion.
• Organic Net Revenues increased 3.2 percent from volume/mix gains of 2.6 percentage points and favorable pricing of 0.6 percentage points, reflecting significant gains from new products.
• Customer inventory shifts in the third quarter, largely related to the spin-off, benefited volume/mix by 2.6 percentage points. These gains were partly offset by 1.3 percentage points from product pruning.