Mondelēz delivers improved third quarter results
Mondelez at this year's Sweets & Snacks Expo. Pic: Neill Barston
Mondelēz International has revealed its third-quarter results that show net revenues up 16.3% for the period, and up 17.1% in total year-to-date, to $26 billion, reports Neill Barston.
The company attributed its upward trajectory having been down to significant investment in its core brands, as well as a number of acquisitions of brands and confectionery interests around the world during the past few years.
As Confectionery Production reported at this year’s Sweets & Snacks Expo in Chicago, US, this summer, the business returned to the event with a prominent display, with a number of enhanced offerings across its portfolio.
Notably, the company has placed a strong emphasis on the development of better-for-you options within its ranges, in response to global customer demand.
Significantly, gross profits for the quarter improved to $881 million, and gross profit margin increased 500 basis points to 38.7 percent primarily driven by favourable year-over-year change in mark-to-market impacts from derivatives and an increase in Adjusted Gross Profit margin.
According to its latest results, the company’s European interests delivered the highest performance, with $3.08 billion revenues for the period, followed by $2.8bn for the US, and $1.79bn across Asia.
“We delivered strong third quarter results that reinforce the durability of our categories, strength of our brands and geographies, and consistency of our execution. All regions delivered strong revenue growth with double-digit profitability growth, underpinned by strong volume/mix performance,” said Dirk Van de Put, Chairman and Chief Executive Officer.
“We believe the best remains ahead as we strengthen and reshape our portfolio, substantially reinvest in our iconic brands, and continue developing best-in-class capabilities in key enablers such as digital and revenue growth management to further drive high-quality, sustainable growth for years to come. Our strong year-to-date performance and category attractiveness provide confidence to again raise both our net revenue and earnings outlook for the year.”
For 2023, the company confirmed it is updating its 2023 fiscal outlook and now expects 14 to 15 percent Organic Net Revenue growth versus the prior outlook of 12+ percent, which reflects the strength of its year-to-date performance.