Kraft results hold key to Cadbury takeover

CHICAGO: Kraft Foods Inc will need to show progress in cutting costs and improving organic revenue when it reports earnings today, in a bid to convince Cadbury shareholders it is a viable deal partner.

Lower commodity prices and cost controls helped other consumer-staples companies beat analyst estimates in recent weeks, including Kellogg Co, Clorox Co and General Mills Inc. They also came in slightly ahead of muted revenue expectations.

If that trend holds for Kraft - which is due to present a formal takeover bid for UK confectioner Cadbury by Nov 9 - it could boost the company's shares and make for a more compelling offer.