Kraft 2009 Annual Report Download - page 36

U.S. Grocery
For the Years Ended
December 31,
2009 2008 $ change % change
(in millions)
Net revenues $ 3,453 $ 3,389 $ 64 1.9%
Segment operating income 1,146 1,009 137 13.6%
For the Years Ended
December 31,
2008 2007 $ change % change
(in millions)
Net revenues $ 3,389 $ 3,277 $ 112 3.4%
Segment operating income 1,009 1,022 (13) (1.3%)
2009 compared with 2008:
Net revenues increased $64 million (1.9%), due to higher net pricing (3.5 pp), partially offset by unfavorable volume/mix (1.6 pp). Net revenues
increased due to higher input cost-driven pricing across several of our key categories, primarily spoonable salad dressings, dry packaged desserts
and ready-to-eat desserts. Net revenues growth was partially offset by lower volume, net of favorable product mix. This reflected the 2008 exit of
Handi-Snacks ready-to-eat desserts, as well as lower shipments in pourable and spoonable salad dressings, Jell-O ready-to-eat-desserts,
barbecue sauce and Cool Whip whipped topping, which were partially offset by growth in Kraft macaroni and cheese dinners.
Segment operating income increased $137 million (13.6%), due primarily to higher net pricing, lower costs due to the completion of the
Restructuring Program and lower manufacturing costs, partially offset by higher marketing support costs, unfavorable volume/mix (lower
shipments, net of improved product mix) and higher marketing, administration and research costs.
2008 compared with 2007:
Net revenues increased $112 million (3.4%), due to higher net pricing (6.2 pp), partially offset by unfavorable volume/mix (2.8 pp). Net revenues
increased due to higher input cost-driven pricing across our key categories, primarily spoonable and pourable salad dressings and Kraft macaroni
and cheese dinners. In addition, net revenues growth was impacted by unfavorable volume/mix driven by lower shipments in spoonable and
pourable salad dressings, ready-to-eat desserts and barbecue sauce, partially offset by volume gains in Kraft macaroni and cheese dinners.
Segment operating income decreased $13 million (1.3%), due to higher raw material costs, unfavorable volume/mix (lower shipments, net of
improved product mix), higher marketing, administration and research costs and higher Restructuring Program costs, partially offset by higher net
pricing and lower marketing support costs.
U.S. Snacks
For the Years Ended
December 31,
2009 2008 $ change % change
(in millions)
Net revenues $ 4,964 $ 5,025 $ (61) (1.2%)
Segment operating income 723 638 85 13.3%
For the Years Ended
December 31,
2008 2007 $ change % change
(in millions)
Net revenues $ 5,025 $ 4,879 $ 146 3.0%
Segment operating income 638 716 (78) (10.9%)
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Source: KRAFT FOODS INC, 10-K, February 25, 2010 Powered by Morningstar® Document Research℠