Kraft 2008 Annual Report Download - page 32

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North America Grocery
For the Years Ended
December 31,
$ change
% change
2007 2006
(in millions)
Net revenues $ 2,699 $ 2,731 $ (32) (1.2%)
Segment operating income 817 919 (102) (11.1%)
For the Years Ended
December 31,
$ change
%
change
2006 2005
(in millions)
Net revenues $ 2,731 $ 3,024 $ (293) (9.7%)
Segment operating income 919 724 195 26.9%
2007 compared with 2006:
Net revenues decreased $32 million (1.2%), due primarily to lower volume (1.8 pp) and unfavorable mix (0.8 pp), partially offset by higher net pricing (1.1 pp)
and favorable currency (0.6 pp). The impact of lower shipments in spoonable and pourable salad dressings, barbeque sauce and dry packaged desserts was
partially offset by higher net pricing in spoonable salad dressings and dry packaged desserts.
Segment operating income decreased $102 million (11.1%), due primarily to higher commodity costs, higher Restructuring Program costs and unfavorable
volume/mix, partially offset by higher pricing.
2006 compared with 2005:
Net revenues decreased $293 million (9.7%), due to the impact of divestitures (8.6 pp) and lower volume (3.6 pp, including the 53rd week in 2005), partially
offset by higher pricing (1.1 pp), favorable currency (0.9) and favorable mix (0.5 pp). Ready-to-eat and dry packaged desserts net revenues declined due to lower
shipment volume. In spoonable salad dressing, net revenues decreased due to lower shipments, partially offset by lower promotional spending. Pourable salad
dressing net revenues declined due to higher promotional spending.
Segment operating income increased $195 million (26.9%), due primarily to the 2005 asset impairment charges related to the divested Canadian grocery assets
and fruit snacks assets, lower marketing, administration and research costs, favorable currency and higher pricing, net of unfavorable costs. These favorabilities
were partially offset by unfavorable volume/mix and the impact of divestitures.
North America Snacks & Cereals
For the Years Ended
December 31,
2007 2006 $ change
%
change
(in millions)
Net revenues $ 6,526 $ 6,358 $ 168 2.6%
Segment operating income 1,018 829 189 22.8%
For the Years Ended
December 31,
2006 2005 $ change % change
(in millions)
Net revenues $ 6,358 $ 6,250 $ 108 1.7%
Segment operating income 829 930 (101) (10.9%)
2007 compared with 2006:
Net revenues increased $168 million (2.6%), due primarily to higher volume (2.3 pp) and favorable mix (2.0 pp), partially offset by the impact of divestitures
(2.2 pp). Favorable mix and higher shipments in cookies and crackers due to new product introductions (including Oreo Cakesters) drove higher net revenues.
Snack bars net revenues increased due to new product introductions and continued success of South Beach Living bars. Snack nuts net revenues increased due to
favorable mix and new product introductions.
30
Source: KRAFT FOODS INC, 10-K, February 25, 2008 Powered by Morningstar® Document Research℠