KFT » Topics » Europe, Middle East & Africa.

This excerpt taken from the KFT 10-Q filed Nov 9, 2005.
Europe, Middle East & Africa.  Volume decreased 4.6%, due primarily to lower volume in Germany and the divestiture of the U.K. desserts business in the first quarter of 2005, partially offset by growth in Ukraine and Russia.  Beverages volume decreased, driven by lower coffee shipments in Germany, due to commodity-driven price increases and lower refreshment beverage shipments in the Middle East, partially offset by higher coffee shipments in Russia and Ukraine.  In grocery, volume also declined, due to the divestiture of the U.K. desserts business in the first quarter of 2005 and lower results in Egypt and Germany.  Convenient meals volume declined due to lower shipments in the United Kingdom and Germany.  In snacks, volume declined, due primarily to lower biscuits volume in Egypt and lower confectionery volume in Germany, partially offset by gains in confectionery in Ukraine and Russia.

 

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Net revenues increased $62 million (3.6%), due primarily to higher pricing, net of increased promotional spending ($43 million, reflecting commodity-driven pricing), favorable currency ($23 million) and favorable volume/mix ($11 million), partially offset by the impact of divestitures ($15 million).  Significant growth in Russia and Ukraine, and gains in several Western European markets were partially offset by a decline in Germany.

 

Operating companies income decreased $4 million (2.4%), due primarily to unfavorable costs and increased promotional spending, net of higher pricing ($33 million, including higher commodity costs), the impact of divestitures ($6 million) and the net impact of the higher implementation costs associated with the restructuring program ($2 million), partially offset by lower pre-tax charges for asset impairment and exit costs ($16 million), favorable volume/mix ($10 million), favorable currency ($6 million) and lower marketing, administration and research costs ($4 million).

 

This excerpt taken from the KFT 10-Q filed Aug 5, 2005.
Europe, Middle East & Africa.  Volume decreased 4.0%, due primarily to lower volume in Germany and the divestiture of the U.K. desserts business in the first quarter of 2005, partially offset by growth in developing markets, including Russia, Ukraine and the Middle East.  Beverages volume decreased, driven by lower coffee shipments in Germany, due to commodity-driven price increases, partially offset by higher refreshment beverage shipments in the Middle East and higher coffee shipments in Russia and Ukraine.  In snacks, volume declined, due primarily to lower confectionery volume in Germany and lower biscuits volume in Egypt, partially offset by gains in confectionery in Russia and Ukraine.  In grocery, volume also declined, due to the divestiture of the U.K. desserts business in the first quarter of 2005 and lower results in Germany and Egypt.  Cheese & dairy volume increased, benefiting from higher shipments of cream cheese and processed cheese in Italy.

 

Net revenues increased $95 million (5.2%), due primarily to favorable currency ($118 million) and higher pricing, net of increased promotional spending ($9 million, reflecting commodity-driven pricing), partially offset by lower volume/mix ($18 million) and the impact of divestitures ($14 million).  Double-digit growth in Eastern Europe, Middle East & Africa and gains in several Western European markets were more than offset by a decline in Germany.  In France, net revenues increased, due primarily to favorable currency, partially offset by increased private label competition and the impact of a net price reduction to realign price gaps.  In Russia and Ukraine, net revenues were up significantly, driven by coffee and confectionery shipments.

 

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Operating companies income increased $20 million (14.3%), due primarily to lower pre-tax charges for asset impairment and exit costs ($64 million), favorable currency ($12 million) and favorable volume/mix ($10 million), partially offset by unfavorable costs and increased promotional spending, net of higher pricing ($50 million, including higher commodity costs), the net impact of the higher implementation costs associated with the restructuring program ($8 million), the impact of divestitures ($6 million) and higher marketing, administration and research costs ($4 million).

 

EXCERPTS ON THIS PAGE:

10-Q
Nov 9, 2005
10-Q
Aug 5, 2005
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