Quarterly growth achieved by Mondelēz International’s snacks business
Mondelēz International has recorded third quarter net venue growth of 1.1%, to a figure of $6.3 billion amid extensions to its global product portfolio.
The snacks and confectionery group, which was represented last week at Gulfood Manufacturing (pictured), has projected organic net revenue growth of 3.5% percent, and expects adjusted earnings per share growth of 5 to 7 percent on a constant-currency basis.
As the business noted, some of its main global achievements have included expansion in key markets, such as gaining share in alternative channels like Discount and Club in the U.S. and reaching the next level of distribution in China where the company’s biscuits and gum products are now sold by 1.5 million and 1 million stores respectively.
According to the company, another of its major goals is in following a dual policy of supporting its activities globally, and at a local level, such as revamping Russian brands such as Jubilee and Dirol, which it said had brought further revenue gains. Meanwhile, in China, Mondelez has targeted locally relevant product ranges to younger “Generation Z” markets with its Stride Gum campaign.
In terms of acquisitions, On July 16, 2019, the business gained a majority interest in a U.S. refrigerated nutrition bar company, Perfect Snacks, within its North America segment. The acquisition added incremental net revenues of $26 million in the three and nine months ended September 30, 2019. In addition for the region, the business bought a US premium biscuit company in 2018, Tate’s Bake Shop, within its North America segment and extended its premium biscuit offerings. Through the one-year anniversary of the acquisition, Tate’s added incremental net revenues of $35 million.
Within the company’s AMEA segment, in connection with the acquisition of a biscuit operation in Vietnam in 2015, the company recorded integration costs of $1 million in the three months and incurred $4 million in the nine months ended September 30, 2018.
“We are pleased to report another quarter of strong top-line growth, continuing the momentum of the first half, enabling us to further increase our outlook for the year. Our strategy to accelerate growth by focusing on the consumer, driving operational excellence and unlocking the potential of our local business units is delivering good results from both local and global brands,” said Dirk Van de Put, Chairman and CEO.