Snack giant Mondelez International has posted a 0.6% increase in organic net revenue in the first quarter of the year, with sales of $6.4 billion for the period.
Organic growth was recorded in its Europe (+1.0%), Asia, Middle East and Africa (+1.3%) and Latin America (+3.7%) divisions, with its North America division posting a 1.9% organic decline.
"We had a solid start to the year despite challenging market conditions," commented Irene Rosenfeld, Chairman and CEO. "We delivered both top-line organic growth and strong margin expansion in the quarter, while also making critical investments for our future."
However, reported net revenues at the company were 0.6% lower. Reported growth in emerging markets saw a 4.2% increase, with developed markets 3.3% lower.
Gross profit margin was 39.4%, an increase of 10 basis points 'driven primarily by lower Restructuring Program implementation costs', the company said.
Power Brands
Its 'Power Brands' division posted a reported revenue rise of 1.6%, to account for $4.7 billion of its sales total. The division includes Oreo, Chips Ahoy!, Ritz, TUC/Club Social and belVita biscuits; Cadbury Dairy Milk, Milka and Lacta chocolate; Trident gum; Halls candy; and Tang powdered beverages.
Mondelez cited 'currency headwinds' for its reported net revenue decline in the period.
Rosenfeld added that the company remains "confident in and committed to our balanced strategy for both top- and bottom-line growth, continuing to focus on what we can control to deliver long-term value creation for our shareholders."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
