Bob Kraft, Kraft Foods Group Inc (NASDAQ:KRFT) chairman & CEO, and New England Patriots owner, talked in an interview on CNBC about his company’s current situation. It’s price swings slightly around $58 per share and has muscled up after a decline in the beginning of August, but due to geopolitical factors it might suffer anew.
The cardboard box indicator, which approximates the purchase amount of non-durable goods based on the number of boxes produced, is employed as a gauging statistic that analysts use to predict investment for production. Demand seems to be growing, which is good news for the company.
“In our packaging business, the first quarter we were a little concerned, because our unit volume was down 1%, but year-to-date through August we’re up 11% and things are fairly strong […],” informed Bob Kraft.
Kraft Foods Group Inc (NASDAQ:KRFT)’s chairman provided no other numbers to further dwell into the matter, but we can see a pattern in which people buy more goods. The company’s only fears are far across the ocean, that is the Ukraine and Middle East, on one side, China and Japan, on the other. Also, Kraft Foods Group Inc (NASDAQ:KRFT)’s European business has been lagging behind, possibly due to the strong foreign currency.
The company’s revenues in the second quarter totalled $4.7 billion, up by 0.7% and their Organic Net Revenues, which exclude the currency effect, went 1.5% higher and their free cash flow grew by 13.8% to $454 million. On the other hand, Kraft Foods Group Inc (NASDAQ:KRFT)’s operating income dropped sharply by 37.5% to $0.9 billion, it’s Earnings per Share diminished from $1.38 to $0.80. The company motivates the difference through “benefit from market-based impacts to post-employment benefit plans” that were to cause such a favorable environment for business last year, compared to 2014.
If the tension in the Eurasian region dissipates, Kraft Foods Group Inc (NASDAQ:KRFT) might enjoy a spike in prices and production numbers, but for the time being, probably, it will focus on the Americas, especially on the local market.