Kraft Mideast revenues up 13pc
Dubai, August 17, 2008
Kraft Foods’ Middle East and Africa operations have delivered double digit organic net revenue growth at 13.2 percent, the company said.
This has resulted in a combined organic net revenue growth of 17.1 per cent for developing markets, it said.
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, it added.
Kraft Foods 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.
“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.
“Our outlook for this region is positive, and we will continue to maintain this upward growth trend as we focus on our core categories. At present, our investments in this region include six manufacturing facilities that produce a variety of Kraft products, as well as contract manufacturing and license agreements in the UAE, Saudi Arabia, Egypt and South Africa”, added Satamian.
In April this year Kraft Foods opened its sixth manufacturing facility in the region. Located in Bahrain, the state-of the-art facility produces 60,000 tonnes of Kraft cheese and Tang products per annum specifically for this region. In addition, the company also manufactures and markets a broad portfolio of iconic brands including Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers and its Oreo brand; Jacobs coffees, Toblerone and Milka chocolates and LU biscuits. -TradeArabia News Service
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