Mondelēz International records third quarter growth, amid ongoing global headwinds
Mondelēz International has posted a key upturn in growth with its third quarter figures up 8.1%, at $7.7 billion for the group, despite wider economic turbulence, writes Neill Barston.
According to CEO Dirk Van de Put, its improved position was owing to the overall resilience of its global businesses, including recent acquisitions.
However, as a measure of market challenges, the company’s gross profits for the third quarter declined by 7.5% to 2.6 billion against the same period the previous year, with operating income also being down 47.5% to $679 million for the period.
Despite these factors, the company remained in a comparatively improved position, with Europe producing the largest share of sales, put at $2.6 billion for the quarter, against $2.4 billion in the US, $1.7 billion in Asia and $913 in Latin America.
Consequently, for 2022, the company confirmed that it is updating its 2022 fiscal outlook and now expects 10+ percent Organic Net Revenue growth versus the prior outlook of 8%. This is despite wider international issues impacting on the sector including logistics tests, retail inflation and the energy crisis negatively influencing many companies’ performance.
As Mondelēz noted, its improved organic revenue increases of 12.1% for the period were led by 11% pricing adjustment amid a backdrop of challenging retail inflation conditions, as well as registering 1% volume growth. The contribution of its acquisitions of Clif Bar and Chipita was also cited as a further positive.
Last month, the company confirmed that it is to place significant extra revenue into supporting key supply chains in Ghana and Ivory Coast. This will take the total sum placed into its flagship Cocoa Life engagement scheme to $1 billion by 2030, aiming to work with around 300,000 farmers.
“Our third quarter performance demonstrates the resilience of our snacking categories, strength of our brands, broad-based net revenue growth of both our emerging and developed markets, effective execution of pricing, and solid volume growth, enabling us to raise our full-year revenue and earnings outlook,” said Dirk Van de Put, Chairman and Chief Executive Officer.
“Despite ongoing macro volatility, we remain focused on executing against our strategy and delivering on items we can control, including supporting our brands and retaining healthy volumes, while continuing to deliver strong profit dollar growth and long-term share gains.”