Mondelez records modest results upturn, despite “unprecedented cocoa cost inflation”
Mondelez returns to this year's Sweets & Snacks Expo. Pic: Neill Barston
Global confectionery and snacking group Mondelez International has revealed an improved opening to 2025, with its first quarter results revealing a modest 0.2% upturn in revenues to $9.3 billion, despite “unprecedented cocoa cost inflation,” reports Neill Barston.
The company is due to make a major appearance at the Sweets & Snacks Expo event in Indianapolis between 13-15 May (watch our video event preview for the show here), where it is anticipated to unveil range extensions across its broad product portfolio, which has continued to show development around the world.
According to the company’s latest results, its European markets delivered the strongest performance for the group, recording $3.55 billion revenues, up by 5.4% year-on-year, with North America delivering $2.54 bn in sales, which was down 4.1% against last year, as the region faces ongoing challenges with higher ingredients costs including cocoa and sugar prices remaining volatile. The third largest region for the company is Latin America, achieving $1.2 billion in sales, which was down 8.8% against the same period in 2024.
Significantly, gross profits came under pressure for the period, and were $2.4bn, down by a total of 48%, which the business attributed to a mix of commodity price challenges, and unfavourable currency exchange rates. The company has projected full-year organic growth of 5%.
In terms of the contributing factors to its results, cocoa in particular, prices have peaked around $12,000 a tonne in January, before dropping off to around just over $8,000 in the past month, which in itself is still significantly higher than two years ago, when it stood around $3,000 a tonne.
The situation has been compounded by a combined series of factors including adverse weather, crop disease, as well as ageing cocoa stock and farming communities, alongside an ageing agricultural workforce in West Africa, with Ghana and Ivory Coast supplying two thirds of sector supplies for the confectionery industry.
Notably, the majority of farmers are continuing to earn below poverty wages of less than $2 a day, which has led to farmers’ unions in Ivory Coast to allow the sector to be managed independently from its present government-led control.
Despite ongoing tests, Dirk Van de Put, Chair and Chief Executive Officer believed that the results would prove a strong platform for the remainder of the year. He said: “We delivered solid Q1 2025 results in line with our expectations, driven by strong execution of our growth strategy while navigating unprecedented cocoa cost inflation.
“Our Q1 pricing and share performance, along with the global strength of our categories, provide us with continued confidence in our full-year outlook. We remain committed to delivering against our strategic agenda and staying agile in this volatile operating environment to drive sustainable shareholder value.”
