Kraft Foods Group Inc. (NASDAQ:KRFT)

The financial data over the three-year period reflects notable fluctuations in key performance metrics. Operating income exhibited a significant increase from 2012 to 2013, rising from 2,670 million US dollars to 4,591 million US dollars. However, this upward trend did not persist, as operating income decreased sharply to 1,890 million US dollars in 2014.

Net revenues remained relatively stable across the three years, with a slight downward trend observed. The revenues were 18,339 million US dollars in 2012, followed by a small decrease to 18,218 million US dollars in 2013, and further marginal decline to 18,205 million US dollars in 2014. This consistency suggests stable sales or revenue generation despite fluctuations in profitability.

The operating profit margin closely mirrors the behavior of operating income, starting at 14.56% in 2012, peaking markedly at 25.2% in 2013, and then falling to 10.38% in 2014. The margin's volatility indicates changes in operating efficiency or cost structures year over year. The sharp increase in 2013 suggests enhanced profitability during that period, while the significant reduction in 2014 points to diminished operational efficiency or higher costs relative to revenue.

Overall Trends

Operating profitability showed considerable volatility, peaking in 2013 then declining substantially in 2014, despite relatively stable revenue levels.

Revenue Stability

Net revenues were largely unchanged, indicating stable sales performance or revenue streams during the period under analysis.

Profitability Implications

The sharp rise and fall in both operating income and operating profit margin imply changes in cost management, pricing strategies, or other operational factors influencing net income independently of sales volume.