Kraft Foods pays $40 million dividend to parent Mondelez after takeover

Thursday 6th June 2013

Kraft Foods Investments (New Zealand), which makes Cadbury chocolate, paid its first dividend of $40 million to its parent company after being taken over in 2010, financial statements show.

Kraft acquired Cadbury's New Zealand operations for $207.3 million as part of the global food manufacturer's 11.9 billion pound takeover of the chocolate maker in 2010. In October, Kraft spun off its North American grocery unit and renamed the global snacks business Mondelez International, including the New Zealand unit.

The New Zealand unit increased sales 1.2 percent to $320.4 million in the year ended Dec. 31, according to the company's financial statements. That compares with Mondelez's US$35 billion of annual revenue last year.

Profit in New Zealand more than tripled to $11.6 million, from $3.5 million a year earlier, as costs dropped 2.3 percent, according to the statements.

The company said it had reduced the value of Cadbury's goodwill by $2.9 million to $40.9 million to account for a deferred tax liability.

Mondelez's shares dropped 0.3 percent to US$29.47 on the Nasdaq on Wednesday, valuing the company at US$52.6 billion.

BusinessDesk.co.nz

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