Kraft Foods posted quarterly revenue that fell short of Wall Street expectations yesterday, but said its $18.4bn (£11.6bn) takeover of rival chocolatier Cadbury would accelerate long-term growth.
Kraft reached a deal to buy Cadbury and create the world’s largest confectioner last month. Investors are waiting to see how the deal boosts Kraft’s growth, especially since top Kraft investor Warren Buffett had opposed the transaction. Kraft expects costs of $1.3bn through the end of 2012 to integrate Cadbury’s operations and aims to achieve annual pre-tax savings of at least $675m in that time frame.
It stood by forecasts for long-term earnings per share growth of nine per cent to 11 per cent and organic revenue growth of at least five per cent for the combined company.