New York, NY, United States (4E) – Kraft Foods Group Inc reported on Wednesday that its second-quarter profit fell despite a slight rise in sales, hit by higher selling and other costs, while the year-ago period included one-time gains.
The Northfield, Illinois-based said quarterly net earnings stood at $482mn, or $0.80 a share, compared with $829mn, or $1.38 a share, in 2013.
Wednesday’s results showed a per-share loss of $0.02 from hedging operations. The previous year included a $0.62 a share gain from market-based impacts to post-employment benefit plans.
Figures for the quarter missed analysts’ estimates, partially because of flat beverage sales and lower sales in meals and desserts segment, although refrigerated meals and cheese businesses registered some growth.
Kraft CEO Tony Vernon said consumer trends offer a challenge to the food and beverage industry, even as the company focuses on cost management, innovation and branding.