The company, who own the Milka and Toblerone chocolate brands, saw net revenues grow 2.3 per cent in the third quarter to $8.2bn (€6.5bn).

Despite this summer's hot weather causing waning sales in the European chocolate market, Kraft noted gains in the sector.

According to the company's financial statement released yesterday: "In chocolate revenues grew across most markets driven by successful new Milka products, positive mix and increased pricing."

On a geographical basis, the company reported its net revenues in the EU grew by 3 per cent to $1.54bn. Organic net revenue growth decreased 1.1 per cent as small gains in chocolate and coffee were offset by declines in groceries and cheese.

"Our third quarter results were mixed. Our restructuring efforts have enabled us to fund a number of successful initiatives in some key growth areas, including 'better-for-you' products, snacking and convenient meals," said Irene Rosenfield, chief executive officer.

Kraft experienced $148m (€120m) in writeoffs and costs incurred, primarily relating to ongoing streamlining efforts. It made a gain of $251m (€200m) on redemption of its interest in United Biscuits and a loss of $3m (€2.4m) on the divesture of the pets snacks brands and assets.

This contrasts against the same period 2005 where Kraft lost $42 million (€33m) in writeoffs and costs.

The third quarter reported net earnings were $748m (€600m), an increase of 11 per cent versus last year.

Kraft is continuing its restructuring program with restructuring and impairment charges expected to total $1bn in 2006, but now expects cumulative savings will reach $530m (€422) by the end of 2006, which is down from a previous expectation of $560m (€366) due to the timing of activities.