Mondelēz enjoys “solid” Q1 performance
Snack giant Mondelēz International has enjoyed a “solid” first quarter performance after posting double-digit net profit growth.
Net earnings increased 13.7% to $630 million for the three months to 31 March, compared to $557m in the same period the previous year.
Net revenues decreased 0.6% to $6.41bn from $6.46bn in the same period last year, weighed down by currency headwinds. In Europe, revenues dropped 3.4%, while Asia, Middle East & Africa and North America fell 1.6%.
Meanwhile, Latin America saw revenues grow 11.4% year-on-year.
Organic net revenue climbed 0.6%, with growth in all regions except North America.
Gross profit margin, however, rose 10 basis points to 39.4% from 39.3%, driven primarily by lower Restructuring Program implementation costs.
“We had a solid start to the year despite challenging market conditions,” says chairman and CEO Irene Rosenfeld. “We delivered both top-line organic growth and strong margin expansion in the quarter, while also making critical investments for our future.
“We remain confident in and committed to our balanced strategy for both top- and bottom-line growth, continuing to focus on what we can control to deliver long-term value creation for our shareholders.”