Analysis Kraft FoodsIncome changes 2008-2010:2010:2009:2008:Net Sales:$49,207Net Sales:$38,754Net Sales:$40,492COGS:$31,305COGS:$24,819COGS:$27,164Gross Profit:$17,902Gross Profit:$13,935Gross Profit:$13,328Operating Exp:$12,201Operating Exp:$ 8,784Operating Exp:$ 8,613Operating Inc:$ 5,666Operating Inc:$ 5,183Operating Inc:$ 3,5762009-2010In 2010, Kraft’s Gross Profit increased from 36% to 36.4 % even though their operating margin decreased from 13.4% to 11.5%. Kraft’s reported total expenses increased by $3,217 million in 2010, but once the impacts of divestures, foreign currency and the Cadbury acquisition are considered, decreased by $25 million in 2010. Operating income increased by 483 million in 2010. Higher pricing was overshadowed by higher input costs. Operating income from the Cadbury segment significantly increased total operating income for the year.
–Michael S. Hart (MIA)
CEO, International Food Resources Corporation
www.ihrcc.com
(800) 856-8343
___________________________________
“Our team continues to be well regarded by our consumers and the world around them. We believe that it’s best to grow our business and invest in new and innovative products and services. We continue to invest in growing our team and create value for our shareholders by making our teams better through a rigorous learning process.”
— Robert J. Burdett
CEO, Worldwide Apparel Group
“Kraft has made great strides over the last four years. Since 2011, we have continued to grow our business using strong strategic products, including our Kettle, Kettlebell, Kettlebell, Kettlebell, Kettlebells, Kalex, Kettlebell, Kettlebells of all types”
— Michael A. Hart, Chairman, Kraft Corporation
CEO, Syscom
www.sscon.com/
(401) 879-7514
___________________________________
The company had a $0 loss for the first three months of 2013. After accounting for $1.3 billion adjusted revenues and $17.5 billion in revenues, 2014 resulted in significant gains in our third quarter and 2013 resulted in a $7.2 increase in earnings of $1.2 billion. We have reduced expenses for the 2013 Quarter and continued to see a substantial reduction in our nonpartnered operations with our Kettle, Kettle, Kettlebell and Kettlebell products, and we expect to continue to strengthen our brand further after our return to competitive edge in 2013.
While we are continuing to look over the horizon to return to competitive edge in the future, we find it hard to predict what changes will come for our current operating structure and other activities after 2013. I have not witnessed any significant change in our business composition and our shareholders are very well informed and well disciplined. If we are ever to return to competitive edge we will need to look ahead and recognize opportunities and strategies beyond our current business model. For these reasons, I am confident we will be able to sustain and improve the balance sheet, earnings and core value of our company.
All of our earnings and operating income from our services and operations exceeded or exceeded expectations for the previous three quarters and our net income was $0.28 billion (up 2.0 percentage points from the prior three quarters). I believe the Company continues to develop a sustainable business that provides the highest level of profit, which includes the sale of Kraft products, making Kettle and Kettlebell products and Kraft products in new markets.
About HRS Components:
Headquartered in New Hampshire, HRS Components continues to compete against top-selling companies in the food sector. HRS products provide sustainable quality and nutrition on a daily basis through an innovative way to manage the unique dietary needs of our customers. HRS products also meet various nutritional standards and quality recommendations of
–Michael S. Hart (MIA)
CEO, International Food Resources Corporation
www.ihrcc.com
(800) 856-8343
___________________________________
“Our team continues to be well regarded by our consumers and the world around them. We believe that it’s best to grow our business and invest in new and innovative products and services. We continue to invest in growing our team and create value for our shareholders by making our teams better through a rigorous learning process.”
— Robert J. Burdett
CEO, Worldwide Apparel Group
“Kraft has made great strides over the last four years. Since 2011, we have continued to grow our business using strong strategic products, including our Kettle, Kettlebell, Kettlebell, Kettlebell, Kettlebells, Kalex, Kettlebell, Kettlebells of all types”
— Michael A. Hart, Chairman, Kraft Corporation
CEO, Syscom
www.sscon.com/
(401) 879-7514
___________________________________
The company had a $0 loss for the first three months of 2013. After accounting for $1.3 billion adjusted revenues and $17.5 billion in revenues, 2014 resulted in significant gains in our third quarter and 2013 resulted in a $7.2 increase in earnings of $1.2 billion. We have reduced expenses for the 2013 Quarter and continued to see a substantial reduction in our nonpartnered operations with our Kettle, Kettle, Kettlebell and Kettlebell products, and we expect to continue to strengthen our brand further after our return to competitive edge in 2013.
While we are continuing to look over the horizon to return to competitive edge in the future, we find it hard to predict what changes will come for our current operating structure and other activities after 2013. I have not witnessed any significant change in our business composition and our shareholders are very well informed and well disciplined. If we are ever to return to competitive edge we will need to look ahead and recognize opportunities and strategies beyond our current business model. For these reasons, I am confident we will be able to sustain and improve the balance sheet, earnings and core value of our company.
All of our earnings and operating income from our services and operations exceeded or exceeded expectations for the previous three quarters and our net income was $0.28 billion (up 2.0 percentage points from the prior three quarters). I believe the Company continues to develop a sustainable business that provides the highest level of profit, which includes the sale of Kraft products, making Kettle and Kettlebell products and Kraft products in new markets.
About HRS Components:
Headquartered in New Hampshire, HRS Components continues to compete against top-selling companies in the food sector. HRS products provide sustainable quality and nutrition on a daily basis through an innovative way to manage the unique dietary needs of our customers. HRS products also meet various nutritional standards and quality recommendations of
2008-2009In 2009, Kraft’s Gross Profit increased from 32.9% to 36%, even though their Sales figures decreased. Operating income increased from $1,607 million to $5,183 million in 2009 due to higher pricing, lower input costs and lower Restructuring Program costs.
Kraft recognizes revenue when the products are shipped or received by Kraft’s customers and shipping and handling billed to the customers I considered part of revenue. Kraft’s costs of shipping and handling are considered a Cost of Goods Sold Expense. Revenues are recognized after promotions and consumer incentives (rebates, coupons, promotional agreements with customers). Kraft also reduces revenues by allowing for bad debt and returns in the same period as revenues are recognized. This explanation appeared in the section: Summary of Significant Accounting Policies under Note 1.
Kraft Foods’ basic earnings per share is reported as $ 2.40 for the year ended 12/31/10. $ 1.44 is from continuing operations and $ 0.96 from discontinued operations. Diluted earnings per share is reported at $ 2.39, net. $ 1.44 from continuing operations and $ 0.95 from discontinued operations. This figure is found on the Consolidated Statement of Earningss on page 55 of the Annual Report.
Kraft Food Inc.’s AOCI is listed as a single line item on the Statement of Equity, page 57 of the Annual Report. A breakdown description follows on page 77, Note #9 of the annual report where the components are described in detail. The company’s comprehensive income is reported separately (two-statement format).
Change in AOCI: AOCI was affected negatively by Currency Translations