Kraft Foods Inc. today reported strong fourth quarter and full year 2011 results, driven by robust revenue growth, effective cost management and focused investments in the company's iconic brands.
"We delivered terrific results in 2011, and our businesses are healthier than ever due to the disciplined execution of our strategy," said Irene Rosenfeld, Chairman and CEO. "We expect to deliver top-tier growth in 2012, in line with our long-term targets, while we prepare to successfully launch the North American grocery and global snacks companies later this year."
Net revenues for the fourth quarter were $14.7 billion, up 6.6 percent. Organic Net Revenues grew 6.1 percent.
For the full year, net revenues were $54.4 billion, up 10.5 percent. Organic Net Revenues grew 6.6 percent, driven by strong growth across all geographies. Pricing contributed 6.0 percentage points of growth, and volume/mix contributed 0.6 percentage points.
Operating income for the fourth quarter was $1.5 billion, and operating income margin was 10.3 percent. Underlying Operating Income(1), which excludes acquisition-related costs(3), Integration Program costs(4), and spin-off-related costs(5), grew 7.4 percent to $1.7 billion.
Operating income for the full year was $6.7 billion, and operating income margin was 12.2 percent. Underlying Operating Income(1) grew 9.7 percent to $7.2 billion, driven primarily by effective management of input costs through pricing and productivity, favorable foreign currency and volume/mix gains. These gains were partially offset by the year-over-year change of unrealized gains/losses from hedging activities and the loss of the Starbucks CPG business(6).