Kraft Foods Group, Inc. reported mixed third-quarter 2014 results. Quarterly profit dropped almost 11% as price hikes, designed to offset higher commodity costs, hit demand for its popular products such as Jell-O desserts, Maxwell House ground coffee, and Velveeta.
The company said gross margin fell to 29.3 percent in the third quarter ended Sept. 27, from 33.8 percent a year earlier.
Kraft’s net income fell to $446 million, or 74 cents per share, in the third quarter, from $500 million, or 83 cents per share, a year earlier.
Revenue edged up 0.1 percent to $4.40 billion.
Analysts on average had expected a profit of 74 cents per share on revenue of $4.47 billion.
For Kraft’s beverages segment, revenue rose 0.5% to $628 million, gains reflected from coffee pricing. Operating income for this segment more than doubled thanks to lower spending for marketing.
KRAFT FOODS – Profit drops on higher commodity costs
