Mondelēz scores third quarter revenue rise, despite continuing challenges

The global Mondelēz International group has reported an upturn in its financial fortunes for the third quarter of 2025, with net revenues up 5.9% for the period, driven by higher pricing, reports Neill Barston.

Notably, the company also cited sustained growth from the acquisition last autumn of major Chinese based Evirth, which is a key player in the $3 billion frozen pastry and bakery market last autumn, that has expanded the snacking giant’s portfolio in the region.

The country’s European interests topped the group’s performance, registering net revenues of $3.6 billion, up 10.6% for the region, followed by the company’s native HQ in the US, which registered 2.8bn net revenues, down 0.4% year-on year, with Asia, Middle East & Africa seeing a 9% rise to $2,01bn and Latin America managing $1.2bn, up 2.8% year-on-year.

Furthermore, the company also noted that favourable currency exchange rates had placed it in an encouraging position, despite considerable headwinds from what it described as ‘record high’ cocoa prices this year – which have since cooled in recent months to under $7,000 a tonne. This is still considerably more than the figure of around $3000 experienced some 18 months ago, which has placed notable strain on the wider sector.

Indeed, market analysts had observed that the pressures facing companies such as Mondelez to consider reducing the size of some of its ranges, including a reported 22% cut in some multi-pack sizes of Dairy Milk earlier this year, according to national newspaper reports.

Furthermore, the business notably was in an industry minority within the sector this quarter in calling for an additional one year delay to the implementation of European deforestation regulations (EUDR) on top of the existing year-long delay, with concerns over the cost and readiness of supply chains for the landmark legislation.

However, a majority of major sector confectionery businesses have in fact lobbied for the swift introduction of the regulations in a bid to drive transparency and traceability into the system, which remains impacted by industry-linked forest loss, as well as wider issues of child labour and crop disease that have significantly affected core supplier nations including Ivory Coast and Ghana.

Speaking on the results, Dirk Van de Put, Chair and Chief Executive, believed that the company was making forward progress.

He commented”:  “We delivered solid top-line growth despite the impact of record-high cocoa cost inflation, with the third quarter representing peak costs of the year,” 

“Although we anticipate challenging conditions to continue in some markets, we are encouraged by recent moderation in cocoa prices, as well as promising signs for a strong cocoa crop this fall.

Our teams are focused on executing clear plans for volume improvement, significantly increasing growth investments, and driving meaningful cost efficiencies. We remain confident in our teams’ proven track record of navigating volatility, as well as our strong business fundamentals, which position us well for next year and beyond.”

While the company’s net revenues were up 5.9 per cent, gross profit decreased $387 million, with operating income also declining $409 million, reflecting wider challenges in the retail sector.

Significantly, the company forecast that its overall growth for the year would be at least 4%, though it noted greater than usual market volatility that could continue to impact the business.