Kraft Foods reports operating income increase of 7.6% from the previous year

Organic net revenue growth reflected the impact of cost-driven pricing actions taken in 2008, positive volume/mix and the benefits of incremental investments in brand building.

Income growth and margin expansion were driven by lower costs due to the completion of the 2004-2008 Restructuring Program, improved product mix and lower fixed manufacturing costs.

In developing markets, which includes Middle East and Africa, Central and Eastern Europe, Asia Pacific and Latin American countries, organic net revenues increased 9.3% driven by solid gains in most regions, mainly fueled by Power Brands such as Tang powdered beverages, Kraft cheeses, Philadelphia cream cheese and Oreo biscuits.

Kraft Foods Middle East and Africa contributed to these results by continuing its trend of strong growth, driven by successful regional investments in cheese, powdered beverages and snacks, and favourable product mix. Increased local production of beverage, cheese, and biscuits, together with optimal cooperation with distributors, JV partners and suppliers also contributed to growth in the quarter.

'Despite a, challenging consumer environment and the slow down of some categories, Kraft Foods Middle East and Africa has extended into the second quarter its solid start of the year with Power Brands such as Tang, Kraft cheese, Oreo, Toblerone and Philadelphia performing well, and cost savings reinvested into building brands,'

said Patrick Satamian, Vice-President and Area Director, Kraft Foods, Middle East & Africa.

'Kraft Foods products are household names in the region owing largely to our established presence, which we have built over 50 years. We have made strategic investments in the region to enhance our consumer appeal which have been yielding results and accelerating our overall growth,' he added.

'We will continue to drive down costs, improve brand equity and profitability and reinvest in our brands to enhance growth. Throughout the MEA region, we have put in place the right organization structure, the right people and the right strategies, which will allow us, together with our partners, to continue the momentum established in 2008,' concluded Satamian.

Kraft Foods Middle East and Africa currently operates seven manufacturing facilities across the region that produce a variety of Kraft products. It also has a number of joint venture, contract manufacturing and license agreements in Morocco, Tunisia, Pakistan, UAE, Saudi Arabia, Egypt and South Africa.

In addition to Tang, Kraft cheeses, Oreo, Toblerone, Dream Whip, the company markets a broad portfolio of iconic brands including Philadelphia cream cheese; Milka chocolates; LU biscuits; Maxwell House and Jacobs coffee; Nabisco cookies and Ritz crackers; Oscar Mayer meats.