Cadbury-parent Mondelēz International forecast a bigger-than-estimated drop in its annual profit, signalling pressures from high input costs and soft demand for its confectionery, including chocolates and biscuits.
Prices of cocoa — a key ingredient in chocolate — have increased relentlessly over the past year, forcing companies such as Mondelēz to hike prices of their products.
That has pushed budget-strained consumers, who were already grappling with a cost-of-living crisis, toward cheaper alternatives.
Outlook
Mondelēz expects its 2025 profit to fall 10% on an adjusted basis, compared with analysts' average estimate of a 6.7% decline, according to data compiled by LSEG.
'This outlook does not reflect any imposition of import tariffs by the US and potential retaliatory actions taken by other countries, as the tariff and trade environment is uncertain and rapidly evolving at this time,' the company said in a statement.
The company reported net revenue of $9.60 billion for the quarter ended 31 December, compared with the estimates of $9.64 billion.
On an adjusted basis, it earned 65 cents per share, below the estimates of 66 cents per share.
Full-Year Performance
The company's full year net revenue grew 1.2% year on year in full-year 2024 to $36.4 billion (€35.1 billion), while organic net revenue increased 4.3%.
Gross profit increased $493 million (€475.03 million), with gross profit margin up 90 basis points to 39.1%. Operating income increased $843 million (€812.3 million) with operating income margin at 17.4%, up 210 basis points.
“Fiscal 2024 was another strong year of performance for our company. We delivered balanced top-line growth, strong earnings, and robust free cash flow generation, while returning significant capital back to shareholders," said Dirk Van de Put, chair and chief executive officer.
News by Reuters, additional reporting by ESM.
