Cadbury sales hit £257M after Kraft buyout

By Dan Colombini

- Last updated on GMT

Related tags: Revenue

Cadbury has generated sales of £257M since it was acquired by US firm Kraft last year
Cadbury has generated sales of £257M since it was acquired by US firm Kraft last year
Food manufacturing giant Kraft has confirmed that UK chocolate firm Cadbury had generated sales of about £257M ($400) since its controversial takeover last year.

The US firm revealed the figure in its latest financial results and also confirmed that the performance had helped meet its cost synergies a year earlier than expected.

Kraft said that it had seen “excellent progress​” since the acquisition of the much-loved British firm, which was met with strong opposition from many MPs and across the UK.

The company has already generated about £257M ($400M) in revenue synergies to date, and is on track to reach its goal of $1bn,” ​a statement from the firm revealed.

“Kraft has already captured more than 80% of its targeted £400M ($750M) in annual cost synergies. In fact, based on the gains to date, the company now expects to deliver approximately £506M ($800M) in cost synergies by year-end. This exceeds the original target about one year ahead of schedule.”

Cycle of growth

Kraft posted strong results for the period ending December 31, with all three of its regions benefitting from a “virtuous cycle of growth​”, the firm revealed.

Kraft Europe saw, net revenues grow 14.9% for the year. Organic net revenues increased 4.6% as strong brand equities enabled a positive contribution from volume/mix, despite significant pricing actions, according to the firm. Power brands also rose more than 7%.

Net revenues rose by 10.5% globally to £35bn ($54.4bn), with focused investment in its power brands also up 8%. This increased organic net revenue growth by 6.6%.

The firm also boasted significant growth in emerging markets, where revenue soared by 16.2%, power brands by 17% and organic net revenue by 11.2%.

Irene Rosenfeld, chairman and ceo, said: “We delivered in 2011, and we'll deliver again in 2012. Our strong operating momentum provides a solid springboard as we prepare to launch two industry-leading public companies later this year​."

Separation

The firm also revealed it was now well-placed to complete the separation of the business by the end of 2012.

Kraft said that it will announce the new name of its new global snacks firm in March, which is expected to produce sales of about £22bn ($35bn).

The firm’s North American grocery business, which will retain the Kraft name, has already produced sales of £11.6bn ($18bn).

Until the businesses separate later this year, Kraft Foods will continue to report as one company,” ​a statement said.

“Organisational structures and personnel decisions will be finalised by mid-year, so that both companies can hit the ground running when they launch before the end of 2012. Just prior to the spinoff, separate investor events for each company will be held​.”

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