Mondelēz International records key nine-month upturn bolstered by major acquisitions
pic by Mike Mitchell
Mondelēz has revealed a performance boost with its nine-month results, recording net revenues increasing 7.8% to $7.2 billion for the period against the previous year, bolstered by several key acquisitions including Hu, Grenade and Gourmet Food, writes Neill Barston.
Organic net revenues increased 5.5% for the quarter, with Latin America producing a notably improved position for the business (recording $751 million net revenues, up 23%, and Asia up 10.8% recording $1.6 billion.
Within Europe, the company recorded $2.7 billion for the period (up 7.4%) and North America stood at $2.08 billion, up by a more modest 1.4%, against a wider global backdrop of the ongoing coronavirus pandemic.
Earlier today, the company pledged a 2050 target of net zero greenhouse gas emissions across its full value chain, signing up to the Science Based Targets drive for limiting global warming to 1.5°C. Furthermore, it has also joined the United Nations Race to Zero Campaign to help build momentum towards a decarbonised economy.
Significantly, the business has also joined with several key confectionery groups including Ferrero, Mars and Tony’s Chocolonely, along with Fairtrade International and Rainforest Alliance, to pursue EU legislation on mandatory due diligence relating to deforestation in cocoa supply chains, which remains a critical issue for the cocoa segment serving the confectionery industry.
“We delivered strong revenue and earnings growth in the third quarter with broad strength across both developed and emerging markets. Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation,” said Dirk Van de Put, the company’s Chairman and Chief Executive Officer.
“We expect elevated inflation and logistics volatility to persist, but remain confident in our plans to deliver on our financial algorithm, supported by compounding brand investments, pricing as necessary, distribution expansion and our robust ESG agenda, including our recently announced target of net zero emissions by 2050.”