NORTHFIELD, Ill.—Kraft Foods. Inc., reported strong fourth quarter and full year 2011 results, driven by robust revenue growth, effective cost management and focused investments in the company's iconic brands. FY 2011 net revenues grew 10.5% globally to $54.4 billion, while Organic Net Revenue grew 6.6%, driven by strong growth across all geographies. Net revenues for 4Q11 increased 6.6% to $14.7 billion, while Organic Net Revenues grew 6.1%.
"We delivered terrific results in 2011, and our businesses are healthier than ever due to the disciplined execution of our strategy," said Kraft Chairman and CEO Irene Rosenfeld. "We expect to deliver top-tier growth in 2012, in line with our long-term targets, while we prepare to successfully launch the North American grocery and global snacks companies later this year."
Rosenfeld said the company’s operating momentum will enable the company to execute the separation of its businesses from a position of great strength. Kraft plans to split into an $18 billion North American grocery business will retain the Kraft Foods name and a $35 billion global snacks company whose proposed name will be announced in March by Dec. 31, 2012. The company will incur one-time charges of $1.6 billion to $1.8 billion. Kraft CFO David Brearton said the company estimates it will incur between $400 million and $800 million in fees as it migrates debt to the North American grocery company.
Rosenfeld highlighted impressive growth in Developing Markets, where net revenues rose 16.2%. Power Brands grew 17%, driving Organic Net Revenue growth of 11.2%t Within Kraft Foods Europe, net revenues also grew strongly, up 14.9%. Power Brands grew 7%, fueling Organic Net Revenue growth of 4.6%, an eighth consecutive quarter of growth, despite the Eurozone crisis.
