BOSTON, Sept. 6, 2012 /PRNewswire/ -- During a
presentation at the Barclays Capital Back to School Consumer
Conference today, Kraft Foods Chairman and CEO Irene Rosenfeld detailed the strategic growth
priorities for Mondelez International, Inc., the new global snacks
company that will debut next month.
(Logo:
http://photos.prnewswire.com/prnh/20090420/KRAFTLOGO)
As previously announced, Kraft Foods Inc. plans to spin-off its
North American grocery business, to be named Kraft Foods Group,
Inc., at 5 p.m. EDT on Oct. 1, 2012. Following the spin-off, Kraft
Foods Inc. will be renamed Mondelez International, Inc.
"As our results show, we've significantly changed the trajectory
of our business to deliver sustainable, profitable growth,"
Rosenfeld said. "With the spin-off of our North American
grocery business, we're now ready to unleash a global snacking
powerhouse that's poised to deliver top-tier revenue and earnings
growth."
Unique Competitive Advantages
Rosenfeld outlined the profile of Mondelez International and how it
is uniquely positioned to win in the marketplace, with competitive
advantages such as leading positions in fast-growing categories, an
advantaged geographic footprint with significant exposure to
Developing Markets, a portfolio of the world's favorite snacks
brands, proven global innovation platforms, strong routes to market
and world-class talent and capabilities.
The leaders of the company's Global Category Teams in Biscuits,
Gum & Candy and Chocolate detailed several examples of how they
are leveraging these competitive advantages in an integrated,
cross-functional way to drive bigger, faster and more profitable
growth.
Delivering Top-Tier Results
Dave Brearton, Executive Vice
President and CFO, highlighted the company's growth algorithm and
financial targets. "Over the long term, we're targeting
organic revenue growth of 5 to 7 percent and double-digit Operating
EPS growth on a constant-currency basis. These rates are higher
than our previous long-term targets for Kraft Foods prior to the
spin."
Brearton added, "For 2013, we expect to deliver results that are
consistent with our long-term profile, specifically, organic net
revenue growth of 5 to 7 percent and Operating EPS of $1.50 to $1.55, including a significant foreign
exchange headwind of about 15 cents
versus 2011 currency rates."
Brearton also updated estimates for transaction-related and
restructuring costs. Spin-off and debt-migration costs are
expected to be in line with earlier guidance. However,
restructuring costs at Mondelez International are expected to be
higher than earlier guidance, reflecting additional restructuring
programs in the United States and
Europe.
A live audio webcast of the presentations, including slides, is
available in the Investor
Center section of company's web site, www.kraftfoodscompany.com,
where it will be archived for one year following the webcast.
ABOUT KRAFT FOODS
Kraft Foods Inc. (NASDAQ: KFT) is a global snacks powerhouse with
an unrivaled portfolio of brands people love. Proudly
marketing delicious biscuits, confectionery, beverages, cheese,
grocery products and convenient meals in approximately 170
countries, Kraft Foods had 2011 revenue of $54.4 billion. On Oct. 1, 2012, Kraft Foods Inc. will separate into
two companies. Mondelez International, Inc. will be a high-growth
global snacks company with annual revenue of approximately
$36 billion and several
billion-dollar brands including Cadbury, Jacobs,
LU, Milka, Nabisco, Oreo, Tang
and Trident. The spin-off company, Kraft Foods Group, Inc.
will be a high-margin North American grocery company with annual
revenue of approximately $19 billion
and billion-dollar brands including Kraft, Maxwell
House, and Oscar
Mayer. A leader in innovation, marketing, health
& wellness and sustainability, Kraft Foods is a member of the
Dow Jones Industrial Average, Standard & Poor's 500, NASDAQ
100, Dow Jones Sustainability Index and Ethibel Sustainability
Index. Visit www.kraftfoodscompany.com and
www.facebook.com/kraftfoodscorporate.
FORWARD-LOOKING STATEMENTS
This press release contains a number of forward-looking
statements. Words, and variations of words such as "plans,"
"continue," "expect," "will," "estimates" and similar expressions
are intended to identify our forward-looking statements, including
but not limited to, our strategies to deliver top-tier financial
performance; long-term targets; 2013 outlook; plans to spin-off our
North American grocery business; expectations to deliver
sustainable, profitable growth; top-tier revenue and earnings
growth; Mondelez International's profile; and transaction-related
and restructuring costs. These forward-looking statements are
subject to a number of risks and uncertainties, many of which are
beyond our control, which could cause our actual results to differ
materially from those indicated in our forward-looking
statements. Such factors include, but are not limited to, our
failure to successfully spin-off our North American grocery
business, continued volatility of input costs, pricing actions,
continued weak global economic conditions, risks from operating
globally, increased competition and tax law changes. Please
also see our risk factors, as they may be amended from time to
time, set forth in our filings with the SEC, including our most
recently filed Annual Report on Form 10-K and subsequent reports on
Forms 10-Q and 8-K. Kraft Foods disclaims and does not
undertake any obligation to update or revise any forward-looking
statement in this press release, except as required by applicable
law or regulation.
NON-GAAP FINANCIAL MEASURES
The company reports its financial results in accordance with
accounting principles generally accepted in the United States ("GAAP").
The company's top-line measure is Organic Net Revenues, which
excludes divestitures, currency and accounting calendar
changes. The company uses Organic Net Revenues and
corresponding metrics as non-GAAP financial measures.
Management believes Organic Net Revenues better reflects the
underlying growth from the ongoing activities of our business and
provides improved comparability of results.
The company uses Operating EPS, which is defined as diluted EPS
attributable to Mondelez International from continuing operations
excluding costs related to: the Integration Program; the
Restructuring Program; and Spin-Off Costs. The company uses
Operating EPS and corresponding metrics as non-GAAP financial
measures. Management believes Operating EPS provides improved
comparability of operating results.
– make today delicious –
[1] Please see discussion of Non-GAAP financial measures at the
end of this press release.
SOURCE Kraft Foods Inc.