Kraft Foods Group Inc (NASDAQ: KRFT) posted a 10 percent decline in third-quarter earnings Wednesday that the company attributed partly to a charge for post-employment benefits.
Revenue was nearly flat as higher prices offset significantly higher commodity costs.
Results met expectations, but Kraft lost 2.5 percent in the extended session, trading at $55.50 per share.
Chief Executive Antonio J. Lucio said the company is "on track to deliver earnings growth" in line with earlier guidance "despite a rapidly changing consumer environment."
But Lucio said free cash flow of $554 million year to date has been "held back" by a combination of higher inventory levels as well as a reduction in accrued liabilities.
The recent post-employment benefits charge amounted to $110 million, or $0.03 per share, versus a year-earlier gain of $0.18 per share on a related item.
Net earnings fell to $446 million, or $0.74 per share, from $500 million, or $0.83 per share a year earlier. Revenue totaled $4.4 billion, versus $4.39 billion last year.
Analysts expected $0.74 per share on revenue of $4.47 billion.
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