Mondelēz records key revenue upturn despite covid trading challenges
pic by Mike Mitchell
Mondelēz International’s first quarter results for 2021 have shown the global snacks and confectionery firm increased net revenues by 7.9% to $7.2 billion, revealing a continued upturn despite continuing pandemic conditions, reports Neill Barston.
The company’s net earnings were similarly buoyant, standing at $968 million for the period, up from $743 million reported for the same time last year at the outbreak of the Covid-19 crisis.
Its core brands including Cadbury and Oreo have maintained a strong presence across global markets, amid continued growth in snacking and confectionery consumption.
According to the US-headquartered business, its improved financial position was attributable to favourable currency conditions, as well as incremental sales from the company’s acquisitions of Give & Go and Hu. There were also encouraging performances from its volume and pricing strategy across the board.
As the results showed, the company’s largest area of business was in Europe (accounting for $2.8 billion in revenues for the first quarter), with the US next at $1.97 billion), and $1.7 billion in Asia, which saw a noted market upturn of 16%, as the business continues to expand its global footprint.
The company’s forecast for the remainder of 2021 was for continued growth of around 3%, as international markets gradually come to terms with challenging trading conditions.
“Our first quarter results demonstrate that we are emerging from the COVID-19 pandemic stronger, as we continue to build upon our track record of robust growth, profitability and cash generation,” said Dirk Van de Put, Chairman and Chief Executive Officer on its positive first quarter results.
He added: “We saw continued improvement across emerging markets, healthy demand in developed markets and another quarter of strong share performance. We remain squarely focused on accelerating growth by further strengthening our core brand and expanding our presence in high-growth channels, categories and adjacencies. Our strategy is working, and our business is better positioned than ever before.”