Mondelēz International reveals results upturn for 2022 first quarter
pic by Mike Mitchell
Mondelēz International has delivered its first quarter results, which show net revenue growth of 7.3% to $7.7 billion, boosted by a notable performance by its chocolate and biscuit businesses, reports Neill Barston.
The company posted net profit earnings of $855 million for the period, which came amid a challenging global supply chain backdrop, which has been hit by rapidly rising energy and ingredients prices. Furthermore, while the business acknowledged that the ongoing conflict between Ukraine and Russia had dented its performance, it remained positive in its financial outlook.
Consequently, the company has made key gains including confirming a major deal put at $1.3 billion to acquire Ricolino from Group Bimbo, which is regarded as Mexico’s leading confectionery business. It employs around 6,000 staff, with a turnover put at $500 million.
Dirk Van de Put, chairman and and CEO welcomed the upturn in performance for the period, He said: “We delivered strong top-line results in our first quarter, driven by higher pricing and strong volume growth.
“Our chocolate and biscuit businesses continue to power our virtuous cycle of attractive revenue growth, strong profitability and robust cash flow. Demand remains strong across both developed and emerging markets, with all our regions posting growth. We expect elevated levels of input cost inflation to continue through the remainder of the year, and we will continue to take necessary actions to offset this dynamic – including a broader revenue growth management agenda, ongoing cost discipline, and further simplification within our business.
“We remain confident in our strategy and ability to create long-term value, while recognising the need to stay agile to navigate the dynamic economic and geopolitical environment. We are also excited about our recently announced agreement to acquire Ricolino that will step-change our presence in the priority market of Mexico — adding to our portfolio some of the country’s most beloved chocolate and candy brands, while broadening our distribution footprint with more than 2,100 direct store delivery routes reaching 440,000 traditional trade outlets.”
As the company added, for 2022, the company now expects 4% Organic Net Revenue growth, which reflects the strength of its first quarter and higher pricing related to increased input costs.
The company also now expects mid-to-high single digit Adjusted EPS growth on a constant currency basis due to the current estimates of the loss of earnings from the war in Ukraine and material commodity cost increases due primarily to increases in energy costs. The company’s Free Cash Flow outlook remains at $3+ billion.