Kraft Foods Group (KRFT), which is merging with ketchup maker H.J. Heinz, reported its fourth straight decline in quarterly profit, hurt in part by low demand for its meals and desserts.
Kraft’s sales growth has been hit in recent quarters by the need to raise prices to offset the higher cost of dairy products and meat.
Kraft’s net income fell 16% to $429 million, or 72 cents per share, in the first quarter ended March 28 from $513 million, or 85 cents per share, a year earlier.
Revenue fell slightly to $4.35 billion.
Heinz, backed by Warren Buffett’s Berkshire Hathaway and Brazilian private equity firm 3G Capital, will combine with Kraft to create the third-largest North American food company, the companies said in March.