CAIRO: Kraft Foods reported an increase in global net revenue by 21.4 percent to $11.2 billion for the second quarter of 2008.
The company’s operating income rose 27.1 percent to $1.5 billion, according to a statement to the press.
Kraft Foods’ Middle East and Africa operations delivered double digit organic net revenue growth at 13.2 percent, resulting in a combined organic net revenue growth of 17.1 percent for developing markets.
Egypt and several of the company’s emerging markets in the region experienced the highest volume of growth at more than 52 percent, according to Patrick Satamian, vice president and area director of Kraft Foods, Middle East and Africa.
Powdered beverages, cheese, biscuits and confectionary led this development throughout the region. The integration of the Danone portfolio, which was completed in Egypt, also impacted the company’s overall strong performance.
“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.
Kraft Foods Inc has raised its outlook for 2008 organic net revenue growth to at least six percent, up from the previous expectation of at least five percent as a result of further pricing actions to offset rising input costs.
“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 Satamian.
In April this year Kraft Foods opened its sixth manufacturing facility in the region in Bahrain, which produces 60,000 metric tons of Kraft cheese and Tang products annually for the region.
The company also manufactures and markets 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.
Kraft, one of the world’s largest food and beverage companies with operations in 150 countries, reported annual revenues exceeding $37 billion.
