Kraft Reports Strong Q4 Revenue, But Challenging Costs From Benefit Plans
Kraft Foods Group Inc (NASDAQ: KRFT) announced fourth quarter financial results Thursday.
Revenue came in at $4.696 billion, above estimates of $4.63 billion and the $4.595 billion reported in the year-ago period.
Adjusted EPS was $0.75 versus estimates of $0.73.
On a non-adjusted basis, the company reported an operating loss of $614 million and an EPS loss of -$0.68. The losses were due to a non-cash loss of $1.364 billion, or -$1.43 per diluted share, from market-based impacts to post-employment benefit plans.
On a non-adjusted basis, the company reported diluted EPS of $1.54 in the fourth quarter of 2013.
Fourth quarter 2014 results also included $92 million, or $0.10 per diluted share, of unrealized losses from commodity hedging activities.
The company claimed in its press release that the financial results “reflected the impact of significant pricing actions to offset record-high commodity costs, mixed execution across the business portfolio as well as a number of factors, which are not expected to repeat.”
"While there were some positive developments in the fourth quarter, we did not deliver to our potential in 2014, with the macro environment and our execution affecting our results," said Kraft Chairman and CEO John T. Cahill.
Kraft Foods Group Inc traded at $65.05 in the after hours session, down 1.69 percent.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.