Kraft profit hit by Cadbury takeover costs

Kraft Foods, which took over Cadbury last year, has reported a fall in quarterly profits.

The takeover saw sales rise by 30 per cent but net profit fell 24 per cent to $540m (£335m) as the cost of integrating the businesses took its toll.

Kraft also warned that it would be increasing prices to offset rising commodity costs.

Kraft has already raised prices on most of its products in Europe and on more than half of those in North America. It plans more increases this year.

Chief executive Irene Rosenfeld said."There's no question that in the developed markets, both in North America as well as Europe, that consumer confidence remains weak," Kraft chief executive Irene Rosenfeld said.

"We expect it will remain weak for the foreseeable future."

Kraft completed its £11.5bn takeover of Cadbury at the beginning of 2010.