Mondelēz International reports quarterly growth driven by strong biscuit and chocolate sales
Mondelez at Sweets & Snacks. Pic: Neill Barston
Mondelēz International has recorded a strong sales upturn, with its second quarter results delivering $7.3 billion net revenues, up 9.5% year-on-year, with its chocolate and biscuit interests attaining key growth, reports Neill Barston.
The Chicago-headquartered firm has recorded an improved position, boosted by recent acquisitions including the Clif Bar snacks business, as well as enhanced demand for its core lines including Oreo – which was a major focus for the company at this year’s Sweets & Snacks Expo (see our exclusive interview with Rick Brindle, the company’s vice president of industry development, here).
Furthermore, the business reported a firm increase across its global operations, with Europe leading its results, delivering $2.6 billion revenues, followed closely by North America, producing $2.2 billion, with Asia also enjoyed a 5.7% upturn to $1.5 billion in sales.
Net earnings for the second quarter period were $747 million, with the company’s CEO Dirk Van de Put expressing confidence for the company’s continued upturn, despite the wider industry facing pressures on ingredients prices, logistics and geopolitical trading uncertainties.
He said: “Our second quarter and first half results were marked by strong top and bottom-line performance across all regions and categories, supporting the raising of our full-year revenue growth outlook.
“Our chocolate and biscuit businesses continue to demonstrate strong volume growth and pricing resilience across both developed and emerging markets. These results combined with ongoing cost discipline, simplification and revenue growth management are delivering robust profit dollar growth and strong cash flow, enabling us to increase our dividend by 10 percent.
“We also continue to execute against our strategy of accelerating our core business while reshaping our portfolio, most recently with our agreement to acquire Clif Bar, a leader in high growth, well-being snack bars, creating a $1 billion-plus snack bar business. Clif Bar has the leading position in the U.S. protein and nutrition segments with clear opportunities to expand domestic and international distribution, velocities and profitability to create significant value for our shareholders in the years to come.”