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Kraft Foods quarterly profit falls 16%

April 28, 2015, 9:05 PM UTC
The Kraft logo is pictured outside its headquarters in Northfield
The Kraft logo is pictured outside its headquarters in Northfield, Illinois, March 25, 2015. Kraft Foods Group Inc, the maker of Velveeta cheese and Oscar Mayer meats, will merge with ketchup maker H.J. Heinz Co, owned by 3G Capital and Berkshire Hathaway Inc, to form the world's fifth-largest food and beverage company. REUTERS/Jim Young - RTR4UUTE
Photograph by Jim Young — Reuters

Kraft Foods Group (KRFT), which is merging with ketchup maker H.J. Heinz, reported its fourth straight decline in quarterly profit, hurt in part by low demand for its meals and desserts.

Kraft’s sales growth has been hit in recent quarters by the need to raise prices to offset the higher cost of dairy products and meat.

Kraft’s net income fell 16% to $429 million, or 72 cents per share, in the first quarter ended March 28 from $513 million, or 85 cents per share, a year earlier.

Revenue fell slightly to $4.35 billion.

Heinz, backed by Warren Buffett’s Berkshire Hathaway and Brazilian private equity firm 3G Capital, will combine with Kraft to create the third-largest North American food company, the companies said in March.