Kraft Foods Group Inc. (NASDAQ:KRFT)

The financial data demonstrates notable variability across multiple key metrics over the observed periods.

Cost of Sales

The cost of sales as a percentage of net revenues fluctuated notably, with periods of significant increase and decrease. The value ranged from a low near -58.95% to a high of approximately -89.95%, indicating periods of rising production or procurement costs relative to sales. Particularly sharp increases are observed in the final quarters, suggesting potential inefficiencies or cost pressures during those times.

Gross Profit

Gross profit margins showed considerable volatility, inversely mirroring the cost of sales trend. Margins oscillated between around 10.05% and 42.02%, with clear peaks followed by steep declines. The most pronounced drop occurred in the quarter ending December 27, 2014, indicating a potential erosion in pricing power or increased direct costs impacting profitability at the gross level.

Selling, General, and Administrative Expenses (SG&A)

SG&A expenses relative to net revenues varied between about -8.88% and -23.1%, with no clear upward or downward trend but frequent fluctuations. Some quarters experienced notable spikes in SG&A costs, which may reflect increased marketing, administrative burden, or restructuring expenses during those periods.

Asset Impairment and Exit Costs

These costs were relatively minor as a percentage of net revenues, mostly below -1%, and sporadic across the data periods. The slight positive figure in one quarter may indicate asset disposals or reversals. The low magnitude suggests that these costs had limited impact on overall profitability trends.

Operating Income

The operating income margin demonstrated significant variability, swinging from a low of approximately -13.07% to highs exceeding 32.95%. The sharp declines and strong recoveries suggest fluctuating operational efficiency and profit management. Negative operating margins in the final quarters of 2014 point to operational challenges or extraordinary expenses affecting earnings before interest and taxes.

Interest and Other Expense, Net

Interest and other expenses as a percentage of net revenues were consistently negative, ranging narrowly between about -0.04% and -2.87%. This indicates stable financing costs comparatively small relative to sales, without marked volatility, which likely had a steady drag on profitability.

Royalty Income from Mondelēz International

Royalty income was reported only in early periods, contributing marginally less than 0.33% to net revenues, with no data for later quarters. Its discontinuation may reflect structural changes in licensing or business arrangements.

Earnings Before Income Taxes (EBT)

EBT margins fluctuated notably, with peaks around 30.25% and troughs dipping to approximately -15.55%. These swings highlight marked volatility in pre-tax profitability, in line with operating income movements and affected by interest expenses and other items.

Provision for Income Taxes

The tax provision as a percentage of net revenues showed wide variation, including negative values. Peaks and troughs ranging roughly from -0.93% to 10.01% suggest changes in taxable income levels, tax planning strategies, or rate changes impacting net earnings.

Net Earnings

Net earnings margins followed a similarly volatile pattern to operating income and EBT, with values spanning from a high near 20.24% to a negative margin at about -8.48%. These fluctuations reflect the combined impact of revenue, cost management, taxation, and interest expenses on bottom-line profitability. The negative net earnings in one quarter indicate a loss, signaling a period of financial strain.

Overall, the data reveals a pattern of considerable earnings volatility, underpinned by shifting cost structures and operational performance challenges. While there are quarters of strong profitability, these are interspersed with periods of margin compression and losses, indicating potential exposure to market, cost, or operational risks during the time frame.