Stock Analysis on Net
Stock Analysis on Net

Kraft Foods Group Inc. (NASDAQ:KRFT)

This company has been moved to the archive! The financial data has not been updated since April 28, 2015.

Common-Size Income Statement
Quarterly Data

Kraft Foods Group Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 28, 2015 Dec 27, 2014 Sep 27, 2014 Jun 28, 2014 Mar 29, 2014 Dec 28, 2013 Sep 28, 2013 Jun 29, 2013 Mar 30, 2013 Dec 29, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
Net revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -69.37 -89.95 -70.64 -67.96 -64.24 -57.98 -66.18 -58.95 -67.43 -74.01 -65.54 -65.82 -67.46
Gross profit 30.63% 10.05% 29.36% 32.04% 35.76% 42.02% 33.82% 41.05% 32.57% 25.99% 34.46% 34.18% 32.54%
Selling, general and administrative expenses -13.63 -23.10 -12.86 -13.63 -15.08 -8.88 -13.68 -10.94 -13.27 -19.72 -17.06 -14.35 -15.05
Asset impairment and exit costs 0.00 -0.02 0.00 0.00 0.05 -0.20 -0.34 -0.47 -1.37 -0.47 -0.96 -0.79 -0.85
Operating income 17.00% -13.07% 16.50% 18.41% 20.72% 32.95% 19.80% 29.64% 17.93% 5.81% 16.44% 19.03% 16.64%
Interest and other expense, net -2.46 -2.47 -2.70 -2.80 -2.66 -2.70 -2.82 -2.76 -2.73 -2.87 -2.30 -0.44 -0.04
Royalty income from Mondelēz International 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.28 0.33 0.27
Earnings before income taxes 14.55% -15.55% 13.80% 15.61% 18.07% 30.25% 16.98% 26.89% 15.20% 2.94% 14.42% 18.93% 16.87%
Provision for income taxes -4.69 7.07 -3.66 -5.46 -6.30 -10.01 -5.60 -9.31 -5.10 -0.93 -4.30 -6.33 -6.02
Net earnings 9.86% -8.48% 10.14% 10.15% 11.76% 20.24% 11.38% 17.58% 10.10% 2.00% 10.12% 12.60% 10.85%

Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).

The common-size income statement reveals significant volatility in profit margins, characterized by a period of expansion in 2013 and a severe contraction in the final quarter of 2014.

Gross Profitability Trends
Gross profit margins exhibited substantial fluctuations, ranging from a low of 10.05% in December 2014 to a peak of 42.02% in December 2013. A notable trend of margin improvement was observed throughout 2013, particularly in the second and fourth quarters. However, this progress was reversed by a sharp increase in the cost of sales during the fourth quarter of 2014, which reached 89.95% of net revenues, the highest cost level recorded in the analyzed period.
Operating Expense Analysis
Selling, general and administrative expenses generally fluctuated between 8.88% and 19.72% for the majority of the period. A significant deviation occurred in December 2014, where these expenses spiked to 23.10% of net revenues. This increase in overhead, combined with the aforementioned compression of gross margins, led to a transition from positive operating income to an operating loss of 13.07% in the same quarter.
Net Earnings and Tax Impact
Net earnings mirrored the volatility of operating income, peaking at 20.24% in December 2013 and falling to a deficit of 8.48% in December 2014. It is observed that the net loss in December 2014 was partially mitigated by a positive provision for income taxes of 7.07%, suggesting a tax benefit or credit that reduced the overall impact of the operational losses.
Financial and Non-Operating Items
Interest and other expenses showed an initial increase from 0.04% in March 2012 to a stabilized range between 2.46% and 2.82% of net revenues for the remainder of the period. Royalty income from Mondelēz International was present only in the first three quarters of 2012, contributing minimally to the total revenue percentage before disappearing from the statement.

The overall financial trajectory indicates a pattern of operational instability during the fourth quarter of 2014, which stands in stark contrast to the margin growth and efficiency gains observed during the 2013 fiscal year.

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