Kraft 2002 Annual Report Download - page 39

Reported operating companies income for 2001 increased
$254 million (13.8%) over 2000, due primarily to the acquisition
of Nabisco ($234 million), lower marketing, administration and
research costs ($140 million, primarily lower marketing expense)
and the shift in CDC income ($15 million), partially offset by
unfavorable margins ($48 million, due primarily to higher dairy
commodity costs) and the loss on the sale of a North American
food factory and integration costs ($63 million). On a pro forma
basis, operating companies income increased 6.4%.
Biscuits, Snacks and Confectionery: Reported volume in 2001
increased more than 100% over 2000, due primarily to the
acquisition of Nabisco. On a pro forma basis, volume in 2001
increased 1.6% over 2000. Excluding the 53rd week of shipments
in 2000, volume also increased 1.6%, due primarily to new
product introductions in biscuits, partially offset by lower
shipments of snack nuts.
During 2001, reported net revenues increased $4.8 billion, or more
than 100% over 2000, due primarily to the acquisition of Nabisco.
On a pro forma basis, net revenues increased 2.1%, due primarily
to higher volume driven by new biscuit products and higher
pricing of biscuit and confectionery products.
Reported operating companies income for 2001 increased
$866 million, or more than 100% over 2000, due primarily to the
acquisition of Nabisco ($925 million), partially offset by higher
marketing, administration and research costs ($27 million). On a
pro forma basis, operating companies income increased 24.9%,
due primarily to higher volume from new biscuit products, lower
commodity costs for snack nuts, and productivity and Nabisco
synergy savings.
Beverages, Desserts and Cereals: Reported volume in 2001
increased 9.8% over 2000, due primarily to growth in beverages.
On a pro forma basis, volume in 2001 increased 7.7% over 2000.
Excluding the 53rd week of shipments in 2000, volume increased
9.3%, due primarily to increased shipments of ready-to-drink
beverages, benefiting from the introduction of new products.
Desserts volume was below the prior year, due to lower shipments
of dry packaged desserts and frozen toppings. Cereal volume
declined, due primarily to weak category performance and
increased competition in the ready-to-eat cereal category.
During 2001, reported net revenues decreased $30 million (0.7%)
from 2000, due primarily to lower net pricing ($167 million, due
primarily to coffee commodity-related price reductions), partially
offset by the acquisition of Nabisco ($83 million), the acquisition
of Balance Bar Co. ($20 million), the shift in CDC revenues ($16
million) and higher volume/mix ($17 million). On a pro forma basis,
net revenues decreased 3.1%, reflecting commodity-related price
reductions on coffee products and lower shipments in desserts
and cereals.
Reported operating companies income for 2001 increased
$102 million (9.4%) over 2000, primarily reflecting lower marketing,
administration and research costs ($139 million), the acquisition
of Nabisco ($32 million), and the shift in CDC income ($7 million),
partially offset by unfavorable margins ($31 million) and
integration costs ($12 million). On a pro forma basis, operating
companies income increased 6.8%.
Oscar Mayer and Pizza: Reported volume in 2001 increased
0.8% over 2000. Excluding the 53rd week of shipments in 2000,
volume increased 2.3%, due to volume gains in processed meats
and pizza. The processed meats business recorded volume gains
in luncheon meats, hot dogs, bacon and soy-based meat
alternatives. Volume in the pizza business increased, driven by
new products.
During 2001, reported net revenues increased $101 million (3.6%)
over 2000, due primarily to higher volume/mix ($75 million), the
shift in CDC revenues ($11 million) and the acquisition of Boca
Burger, Inc.
Reported operating companies income for 2001 increased
$27 million (5.3%) over 2000, primarily reflecting higher
volume/mix ($45 million), lower marketing, administration and
research costs ($22 million) and the shift in CDC income, partially
offset by unfavorable margins ($36 million, due primarily to higher
meat and cheese commodity costs).
Kraft Foods International
(in millions)
Year Ended December 31, 2002 2001 2000
Reported volume (in pounds):
Europe, Middle East and Africa 2,961 2,826 2,829
Latin America and Asia Pacific 2,059 2,057 803
Total reported volume (in pounds) 5,020 4,883 3,632
Volume of businesses sold:
Europe, Middle East and Africa (1) (40)
Latin America and Asia Pacific (135) (172) (37)
Estimated impact of century
date change:
Europe, Middle East and Africa 7
Latin America and Asia Pacific 7
Nabisco volume:
Europe, Middle East and Africa 44
Latin America and Asia Pacific 936
Pro forma volume (in pounds) 4,885 4,710 4,549
Reported net revenues:
Europe, Middle East and Africa $6,203 $5,936 $6,398
Latin America and Asia Pacific 2,035 2,328 1,212
Total reported net revenues 8,238 8,264 7,610
Net revenues of businesses sold:
Europe, Middle East and Africa (131)
Latin America and Asia Pacific (68) (90) (21)
Estimated impact of century
date change:
Europe, Middle East and Africa 14
Latin America and Asia Pacific 12
Nabisco net revenues:
Europe, Middle East and Africa 46
Latin America and Asia Pacific 1,028
Pro forma net revenues $8,170 $8,174 $8,558
35