Sense the freshness
Danisco
Net revenue for the group, who produce Oreo and Ritz cookies, grew 3.4 per cent to $8.6bn (€6.8bn) in the financial second quarter.
The figures reflect a year of restructuring from the company who incurred substantial costs in an effort to streamline the business and plan to close up to 40 plants by 2008.
Asset impairment, exit and implementation costs amounted to $243m (€192m) - a huge jump from the $55m (€43.5m) costs incurred in the same period last year.
To explain its 44.5 per cent rise in net earnings from continuing operations to $682m (€539.6m), Kraft, who are the world's second largest food company, pointed to increased advertising, product diversity and cost saving measures such as the closure of seven facilities and efforts to simplify the internal business systems.
Chief executive officer, Irene B. Rosenfeld said: "We're making good progress focusing and strengthening the portfolio, which will set the stage for accelerating our growth."
Growth in the company's large snacks and cereals sector grew by 6.2 per cent to $1.61bn (€1.3bn), in part due to higher pricing.
Net revenues from the European Union sector fell 3.1% to $1.5bn (€1.2bn), but increased 3.5% excluding the impacts of unfavorable currency.
Earlier this month, Kraft bought United Biscuit's southern European biscuit business for $1.05bn (€829.6m), meaning that it currently owns seven of the top ten selling biscuits in Spain.
