Mondelēz International posts solid second quarter growth
Mondelēz International has reported a second quarter financial upturn for its global confectionery business, with net revenues for the period up 2.1%, to $6.1 billion (€5.2 billion).
The performance built on momentum from its first quarter figures, with half-year results showing a 3.8% increase to $12.9 billion (€11.1 billion), driven by increases across its major markets in Europe, the US, Latin America, as well witnessing growth in emerging markets in Africa and Asia.
Its highest area of growth was seen in Europe, which saw a 10.4 revenue increase to $5 billion (€4.3 billion), supported by a series of significant launches that included its Cadbury Dairy Milk bars with an Oreo sandwich and released plans for a 30% reduced sugar Dairy Milk Bar. In addition, there has been significant attention focused on its plans to revive its Toblerone brand in a larger format with an increased price point following customer feedback.
The company’s improved financial performance within Europe was followed by an 8.7% revenue rise in Latin America, to $774 (€663 million).
Consequently, the business has raised its full-year outlook for 2018, to ‘the high end of 1-2% growth. In 2017, the business achieved net revenues across its confectionery and snack operations totalling $26 billion (€22.3 billion).
“We delivered a strong second quarter, in both developed and emerging markets, building on the momentum created in the beginning of the year,” said Dirk Van de Put, chairman and CEO (pictured). “We posted solid top-line results with good performance across all regions. We remain focused on executing against our plans and will share the results of our strategic review with investors in September.”