Rising Costs Spell Q2 Trouble for Kraft

21 July 2004

America's biggest foodmaker, Kraft Foods, reported a fall in second quarter profits caused by risng costs for dairy product ingredients and increased marketing expenditure -- the latter designed to energize torpid sales.

Profits for the quarter fell to $698 million (€564m; £377m), compared with $949m a year earlier – a slump of 26%.

Roger Deromedi, who took over as ceo last December, faces the challenge of reviving sales and arresting the fall in profits. The Q2 figures are the fourth decline in a row.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff