Mondelēz International reports financial quarter upturn
pic by Mike Mitchell
Mondelēz International has reported an encouraging financial quarter, with net revenues increasing 2.1% to $6.9 billion, attributed to a boost from organic sales growth totalling 4.1%.
CEO and chairman Dirk Van de Put, said the results were a “major step forward for the company,” despite challenging trading conditions meaning full-year net revenues of $25.9 billion, were down 0.3%. This was stated as being due to unfavourable currency exchanges.
As the business noted, the company made strong progress against accelerating consumer-centric growth, and delivering operational improvements.
In terms of senior management, Gustavo Valle joins the company as President, Latin America, effective February 1, 2020. He has more than three decades of leadership experience across Latin America, North America and Europe. In more than 20 years at Danone, he held a breadth of positions and most recently led the global dairy division, having previously delivered business turnaround and managed through volatility as CEO Brazil and CEO Argentina
The company reported progress in its fast-growing markets and channels, including European discounters, and biscuits in North America, with further growth recorded in other territories including China, India and Russia.
Among the key initiatives for the business in the past year have been its Global Brands & Local Jewels, celebrating its major brands, as well as investing in regional variations of product ranges.
The company (photo by Mike Mitchell) also said there had been a programme of continuous cost improvement, simplification of bringing innovations to market, and a ‘local first’ culture built upon clear accountability.
“2019 was a major step forward for the company: Execution of our strategy, including investments in global and local brands, enabled us to deliver strong top-line performance and to meet or exceed all of our financial targets,” said Dirk Van de Put, Chairman and CEO.
“We are increasingly confident that our incremental investments in brands and capabilities, emphasis on volume leverage and profit dollar growth will create a virtuous cycle that consistently delivers attractive top-and bottom-line growth and sustained free cash flow generation.”