Mondelēz International posts first quarter upturn, despite ongoing market challenges

Mondelēz International has reported a net revenue increase of 1.4% to $9.29 billion for the first quarter of 2024, reflecting an upturn in performance from its European and Latin American operations, reports Neill Barston.

However, the company conceded that conditions remain ‘challenging’ amid ongoing inflation issues across global markets, driven largely by rises in key ingredients costs placing pressure on global supply chains.

Furthermore, as reported by Reuters, the business is also facing an as yet to be determined fine from the European Commission, which has been investigating its operations, with the company said to have made regulatory filings in January indicating around $361 million liability in regards to the case.

The antitrust matter reportedly centres on its alleged blocking of sales of its products across EU borders, which it believed would negatively impact consumers amid a high period of inflation.

Notably, the global firm’s performance in Latin America stood at $1.3bn for the period, up 8.9%, and $3.3bn in Europe, its highest revenue generating region, while conditions within North America proved more testing, with net revenues down 2.1% to $2.6 bn for the first quarter of the year.

It is due to play its part in the major Sweets & Snacks Expo taking place in Indianapolis, Indiana between 13-16 May, having moved from its long-term home based in Chicago.

From its previous appearances at the show, the company has used its appearance as a major launchpad for its full portfolio of products, with renewed releases anticipated for this month’s major international event.

mondelez’s Oreo cookie range was one of many successes at this year’s Sweets & Snacks event in Chicago, US. Pic: Neill Barston

As reported by Confectionery Production, the business has just revealed a new collaboration between its Oreo and Sour Patch brands, with, as well as recently launching its latest State of Snacking report outlining consumers continued demand for product ranges that both have an element of indulgence, as well as offering better-for-you options in the mix.

Dirk Van de Put, Chair and Chief Executive Officer, believed the company’s results demonstrated a core resilience within the business. He commented: “We posted solid top-line results coupled with robust earnings and free cash flow generation in the first quarter driven by strong pricing execution, effective cost management and emerging market momentum.

“Despite facing a challenging and dynamic operating environment, our teams remained focused and agile in executing against our long-term growth strategy. We continue to reinvest in our brands, drive distribution gains and capture synergies from recently acquired assets to drive sustainable long-term growth.”

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