Kraft Foods Swings To Q4 Loss, CFO To Leave

(RTTNews) - Kraft Foods Group Inc. (KRFT), Thursday reported a loss for the fourth quarter from a profit last year, hurt largely by post-employment benefits plan, notwithstanding a growth in revenues.

Kraft also said its Chief Financial Officer and two other senior executives would leave the company.

Northfield, Illinois-based Kraft reported a fourth-quarter loss of $398 million or $0.68 per share, compared to a profit of $931 million or $1.54 per share a year ago.

Loss for the quarter was mainly due to a non-cash loss of $1.36 billion or $1.43 per share from market-based impacts to post-employment benefit plans. Fourth quarter results also included a $92 million or $0.10 per share of unrealized losses from commodity hedging activities.

Excluding the market-based impact to the benefit plans, operating income grew at a low single-digit rate, while earnings grew at a double-digit rate.

On average, 14 analysts polled by Thomson Reuters expected the company to report a profit of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter grew 2.2 percent to $4.70 billion from $4.60 billion last year. Analysts had a consensus revenue estimate of $4.63 billion for the quarter.

Revenue growth was driven by productivity gains and higher net pricing that more than offset higher commodity costs.

"While there were some positive developments in the fourth quarter, we did not deliver to our potential in 2014, with the macro environment and our execution affecting our results," said Kraft Chairman and CEO John Cahill.

Further, Kraft said its CFO Teri List-Stoll will be leaving the company, effective February 28, 2015. The company's Chief Marketing Officer Deanie Elsner and Chuck Davis, Executive Vice President of Research, Development, Quality and Innovation, will also be leaving the company.

Meanwhile, the company has appointed George Zoghbi, currently Vice Chairman, Operations, R&D, Sales and Strategy, as Chief Operating Officer. The company also announced that Chris Kempczinski, who currently leads Kraft's Canada business unit, will assume an expanded role as Executive Vice President of Growth Initiatives and President of International.

KRAFT is currently trading at $66.17, up $1.10 or 1.69%, on the Nasdaq. The stock, however, dropped $1.27 or 1.92% in the after hours trade.