NORTHFIELD, Ill., July 30, 2014 /PRNewswire/ -- Kraft Foods Group, Inc. (NASDAQ: KRFT) today announced financial results for the second quarter of 2014 that reflected the expected benefit from a shift in Easter-related shipments as well as the impacts of significant pricing actions in response to rising input costs.
"We continue to execute our playbook and are on track to deliver another solid year of growth in earnings and cash flow," said Kraft CEO Tony Vernon. "However, there's no question that economic and consumer trends are creating top-line growth challenges for the food and beverage industry, Kraft included. Our focus remains on driving profitable growth through brand renovation, innovation, impactful marketing and total cost management."
Q2 2014 FINANCIAL SUMMARY
Net revenues in the second quarter increased 0.7 percent to $4.7 billion.
- Organic Net Revenues increased 1.5 percent from improved volume/mix and pricing benefits of 0.9 percentage points and 0.6 percentage points, respectively.
- Revenue was favorably impacted by approximately 2.5 percentage points from Easter-related shipments shifting to the second quarter of this year. Excluding this factor, volumes were negatively impacted by significant price increases in response to higher input costs.
Earnings per share in the second quarter were $0.80.
- EPS in the second quarter last year was $1.38, which included a $0.62 benefit from market-based impacts to post-employment benefit plans.
- Excluding this factor, EPS growth reflected an increase in operating income, partially offset by a higher year-over-year tax rate.