Business | Markets
Middle East and Africa markets contribute in Kraft's 21% global revenue growth
Kraft Foods Inc. reported strong second quarter 2008 results, with global net revenue for the same period increasing by 21.4 per cent to $11.2 billion and operating income jumping by 27.1 per cent to $1.5 billion. Continuing in previous trends, Kraft Foods' Middle East and Africa operations delivered double-digit organic net revenue growth at 13.2 per cent, resulting in a combined organic net revenue growth of 17.1 per cent for developing markets.
- Staff Report
- Published: 18:30 August 13, 2008
Dubai: Kraft Foods Inc. reported strong second quarter 2008 results, with global net revenue for the same period increasing by 21.4 per cent to $11.2 billion and operating income jumping by 27.1 per cent to $1.5 billion. Continuing in previous trends, Kraft Foods' Middle East and Africa operations delivered double-digit organic net revenue growth at 13.2 per cent, resulting in a combined organic net revenue growth of 17.1 per cent for developing markets.
Primary drivers for the region's overall positive outlook included successful brand and marketing investments, as well as favourable product mix and pricing that more than offset higher input costs.
"Our business continues to strengthen and performance is exceeding our expectations despite a challenging operating environment. Our investments in this region are driving stronger top line growth and we are now seeing that reflected in improved profitability. We expect our year-on-year results to improve further in the second half of 2008 as we continue to reinvest in our brands and reduce our costs", said Patrick Satamian, Vice-President and Area Director, Kraft Foods, Middle East & Africa.
According to Satamian, Egypt and several of the company's emerging markets in the MEA region, experienced the highest volume of growth at more than 52 per cent, with powdered beverages, cheese, biscuits and confectionary leading this development throughout the region. The integration of the Danone portfolio, which was completed in Egypt, also impacted the company's overall strong performance.
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