Cadbury parent Mondelēz International beat market expectations for first-quarter sales and profit, helped by steady demand for its pricey products including chocolates and salted crackers, despite rising inflationary costs.
The Chicago-based company maintained its annual forecasts for organic net revenue growth and profit.
While Mondelēz International increased its prices by 6.3 percentage points in the quarter, its volumes fell 2.1 percentage points.
However, with significant price hikes undertaken over the past few quarters, it was able to shield its margins from still-high cocoa and sugar prices.
Quarterly Highlights
The firm posted net sales of $9.29 billion (€8.64 billion) for the first quarter, compared with analysts' average estimate of $9.16 billion (€8.52 billion), according to LSEG data.
On an adjusted basis, Mondelēz reported a profit of 95 cents per share for the quarter ended 31 March, compared with analysts' estimate of 89 cents per share, according to LSEG data.
Commenting on the company's performance, Dirk Van de Put, chair and chief executive officer stated, “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.”
Divisional Performance
In Europe, net revenue (reported) increased 1.8% year-on-year to $3.4 billion (€3.16 billion).
In North America, the company generated $2.7 billion (€2.51 billion) in net revenue, marking a decline of 2.1% compared to the year-ago period.
The company's net revenue increased by 8.9% in Latin America to $1.3 billion, while it increased by 0.6% in Asia, Middle East & Africa to $2 billion.
News by Reuters, additional reporting by ESM.
