By Jason Theodorou
US food company Kraft has seen a high first quarter profit, boosted by the purchase of UK confectionary company Cadbury. Kraft saw profits of $937 million (£590 million), up from $827 million in the same period in 2009.
Kraft was accused of failing to hold up promises over closing Cadbury plants, but said today that one third of its executives were derived from the Cadbury business.
Irene Rosenfield, Kraft chief executive, said: “We delivered strong earnings in the quarter and the first half of the year, despite difficult conditions in many markets that tempered top-line growth... In addition, our Cadbury business delivered solid financial results."
Kraft's revenues increased by 6.3%. Cadbury made up 1.9% of the group's revenues, shoring up profits after a takeover in February. The company performed poorly in the US, partly due to strong performance by competitors.
Kraft saw a rise in input costs, and said this would have an impact in the second half of the year. A rise in prices for cocoa, wheat and sugar was largely offset by hedging strategies that factored in price volatility.