Kraft Foods Inc's global net revenue for the third quarter grew 19.4 per cent to $10.5 billion while operating income rose 17.1 per cent to $1.0 billion.

In developing markets, which includes the Middle East and Africa, organic net revenue grew 19.1 per cent driven by strong results in every region, said a company statement.

“Our growth momentum in the Middle East and Africa region has continued with solid top and bottom line results driven by pricing, category growth and share gain, as well as the introduction of new products, also structural changes made in some markets have allowed for accelerated growth,” stated Patrick Satamian, vice-president and area director, Kraft Foods, Middle East & Africa.

“The upward trend in profitability is also fuelled by cost reductions resulting from our increased focus on producing Power Brands such as Tang, Kraft Cheese, and Oreo locally. We are also seeing increased efficiencies in manufacturing and logistics, owing largely to our strong presence in the region and improved synergy with local suppliers.”

At the same time imported confectionary brands such as Toblerone and Milka, and Philadelphia Cheese are successfully meeting with consumer acceptance, he added. 

“Kraft Foods products are household names in the region owing largely to our established presence, which we have built over 50 years,” he added.

Kraft Foods Middle East and Africa currently operates six manufacturing facilities that produce a variety of Kraft products. It also has contract manufacturing and license agreements in the UAE, Saudi Arabia, Egypt and South Africa.

The company has raised its outlook for 2008 and expects organic net revenue growth of seven per cent, up from the previous expectation of at least six per cent as a result of stronger-than-expected year-to-date volume performance.

The company continues to expect cumulative annualised savings from the restructuring programme to reach approximately $1.1 billion by year-end 2008. 

To date, cumulative annualised savings from this cost restructuring programme totaled approximately $1.0 billion, up from approximately $0.8 billion at the end of 2007.-TradeArabia News Service