Mondelēz annual results reveal resilient fortunes, projecting further market growth

Mondelēz has released its annual and fourth quarter results, revealing net revenues of $36 billion, up by 14.4% as the business continues a pattern of global expansion that has seen it acquire fast-rising businesses in the snacking sector, writes Neill Barston.

As the business, which includes its flagship Oreo brand noted, its increases saw growth following its decision to buy Clif Bar and Ricolino, with its financial uptick reportedly due to both pricing and favourable volume/mix across its extensive portfolio.

Net earnings for the business stood at $4.9 billion, up 13% year-on-year, with Europe delivering the greatest level of sales (12.8 billion), followed by North America (11.07 billion) and then Asia $7billion), as it continued on a pattern of expanding its range of confectionery and snacks across its territories.

For the fourth quarter of 2023, the business delivered net revenue of $9.3 billion, up 7%, which continued its positive developments in spite of wider market headwinds.

Its continued ambitious programme of development was showcased at last year’s Sweets & Snacks Expo, where the business unveiled a strong mix of established brands, as well as looking to further the portfolios of its recent acquisitions.

The business, as with many others within the sector has been faced with mounting processing costs in the wake of a major upturn in cocoa prices, as well as the cost of sugar increasing significantly, which has had a further impact on the broader industry. Despite this, the company remained upbeat in its forecasts, projecting net revenue growth of between three and five per cent during 2024.

“Our 2023 results underscore the strength of our execution, the importance of our investments and the resiliency of our portfolio, footprint, categories, and brands. We delivered double-digit top-line and earnings growth for the year, leading to strong cash flow generation and capital return to shareholders. Our growth was balanced across developed and emerging markets, with robust performance in all regions,” said Dirk Van de Put, Chairman and Chief Executive Officer. “As we enter 2024, we continue focusing on strong execution, supported by a significant increase in investments behind our brands, capabilities, and talent. We remain confident that we are well positioned for sustainable top- and bottom-line growth in the years ahead.”

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