Kraft Foods Group released its earnings and revenue report Thursday that showed results that exceeded analysts’ forecasts. The food company’s shares increased after the release of the report. Its earnings excluded items were 76 cents per share. Its revenue was $4.55 billion. Analysts estimated the company to have earnings excluding items of 64 cents per share with revenue of $4.48 billion.
Earnings and revenue numbers from the previous year were not available because Kraft Foods was split into two companies last year so that each could focus on a more narrow selection of products. In October, Kraft Foods spun off its global snacks and candy business that included the Cadbury and Oreo brands into a new company called Mondelez International. Its North American grocery business became Kraft Foods Group that includes Miracle Whip, Oscar Mayer, Velveeta, Jell-O, Maxwell House coffee, and other brands.
Kraft CEO Tony Vernon said during the earnings release that the company’s first quarter results showed strong returns on their new product innovations to date. He said that their cost savings outpaced their plans to reinvest in their brands. In the upcoming months, they will execute their marketing playbook across their portfolio and they expect progress for the full year.
Kraft Foods focused on North America and has faced tough challenges in growing its business. The packaged food industry in the region has already matured. Executives are focusing on making the company leaner by pruning out less profitable brands. They are also trying to refresh the images of several brands, such as Grey Poupon and Kool-Aid.
The company stood by its 2013 outlook for earnings of $2.75 per share with revenue growth in line with that of the North American food and beverage market. Other food companies that reported quarterly earnings Thursday are Kellogg, Hillshire Brands, and Hain Celestial Group.
