Kraft Foods Inc. reported strong first quarter 2010 results bouyed by good operating momentum in every geography. Volume/mix improved sequentially from the fourth quarter 2009 and contributed significantly to income growth and margin expansion for Kraft Foods' base business.

"Our first quarter results are early evidence of our future potential in combination with Cadbury," said Irene Rosenfeld, Chairman and CEO. "We demonstrated strong momentum in our Kraft Foods' base business, including high-quality top-line growth and strong operating gains. In addition, our Cadbury business delivered solid financial results."

Rosenfeld continued, "Our integration is progressing extremely well. We moved quickly to name our leadership teams, and I'm pleased that about a third of our top 50 executives are from Cadbury. We've confirmed our synergy targets and the specific initiatives that will drive future margin expansion and accelerate our growth."

Net revenues from continuing operations in the first quarter increased 26.0 percent to $11.3 billion, including the favorable impact of 18.9 percentage points from the Cadbury acquisition, 4.2 percentage points from currency and a negative 0.4 percentage point impact from divestitures.

Combined Organic Net Revenues grew 3.9 percent, reflecting 3.3 percent organic net revenue growth of Kraft Foods' base business and 8.2 percent organic net revenue growth of Cadbury. Kraft Foods' base business growth was driven by 3.1 percentage points from volume/mix and 0.2 percentage points from pricing. The benefit of earlier shipments of Easter products versus the prior year added approximately one-half percentage point to the combined company's organic growth.

Operating income in the first quarter increased 2.6 percent to $1,206 million, including favorable impacts of 6.4 percentage points from currency and 17.8 percentage points from Cadbury's operations, partially offset by a negative 25.3 percentage point impact from acquisition-related costs(3) and integration costs(4). Excluding these factors, Kraft Foods' base business operating income increased 3.7(1) percent reflecting volume/mix gains and productivity improvements that were partially offset by a negative 10.4 percentage point impact due to the change in unrealized gains and losses from hedging activity.