Mondelēz forecasts growth for the remainder of the year
Mondelēz International has increased its financial outlook for the remainder of 2019, forecasting 3% growth over the next six months for the business.
Its improved statement came despite challenging market conditions for the first half of this year, which saw net revenues decline by 0.8% at $6.06 billion, which the company had said was down to unfavourable currency exchange rates during this period.
However, its results in terms of organic revenues were up 4.6%, with Dirk Van de Put, Chairman and CEO, hailing the figures as an encouraging sign for the remainder of the year.
He said: “Our strong second quarter performance demonstrates the potential of our strategy to accelerate volume-driven top-line growth in both developed and emerging markets.
“Our more consumer-centric mindset is driving investments in advertising and promotion of our global and local brands, as well as accelerated innovation and improved distribution capabilities, building a sustainable foundation for long-term growth and value creation for our shareholders.”
The business, which has just released plans for a portion control policy to develop all its Cadbury chocolate and wider biscuit products for children to be created with under 100 calories. has presented a range of key company goals across its confectionery and snacks ranges.
These include:
– Expansion of Channels and Key Markets: investing in fast-growing sales channels, including e-commerce, and winning in high-potential emerging markets
– Investment in Global and Local Brands: continuing momentum on two of the company’s largest brands, Oreo and Cadbury Dairy Milk, as well as reigniting local jewels like Nutter Butter in the U.S., which celebrated its 50-year anniversary with double-digit growth in the quarter
– Partnerships and M&A: entering nutrition bars with Perfect Snacks acquisition
Marketing & Sales Excellence: leveraging the company’s leadership in the chocolate category by driving growth and gaining share in key markets with best-in-class Easter execution
– Continuous Cost Improvement: maintaining cost discipline throughout the organisation with ongoing initiatives like waste reduction in the U.S. network and embedded ZBB processes
– Local First Culture: delivering efficiencies including a 40% reduction in business planning meetings in Europe as a result of the company’s new structure and culture
– Speed, Agility and Simplicity: getting innovation to market faster like new Cadbury Go Nuttier in the U.K., leveraging Agile methodology and a pilot launch
– Sustainable Snacking: advancing in the company’s sustainability journey this quarter with the publication of the company’s Impact 2025 commitments, including its goals to source 100% of cocoa for its chocolate through Cocoa Life and achieve 100% packaging recyclability. In addition, the company reached an agreement with Enel Green Power to source solar power in support of its goal to cut CO2 emissions in manufacturing by 15% by 2020.
