Snacking giant Mondelēz International has unveiled a new tagline, 'Snacking Made Right', and has announced several long-term strategies.
The new tagline will build on the company’s commitment to offering consumers the appropriate snacking options made of sustainably sourced ingredients.
It also announced new long-term targets, reaffirmed its 2018 outlook, and shared its outlook for 2019.
New Strategies
Mondelēz International aims to focus on improving the brand positioning of its snacks, extend its product line in new, growth-oriented markets and achieve operational excellence.
The company also aims to improve its marketing and digital capabilities and expand into the e-commerce sector.
It will also focus on improving its day-to-day operations, including world-class customer service capabilities
The snacking giant wants to generate sustainable shareholder value by implementing the new strategies.
Mondelēz's chief financial officer, Luca Zaramella said, “We are confident that our new strategic plan will create sustained long-term shareholder value, by accelerating our top-line growth, continuing to focus on productivity gains and improving our cash flow generation.
"We expect our new strategy to deliver consistent Adjusted EPS growth at constant currency in the high-single digits and strong Free Cash Flow in the years ahead.”
Long-Term Growth Targets
The company has outlined its long-term annual targets and capital allocation priorities, which include an organic net revenue growth of 3%-plus and a high-single-digit adjusted EPS growth at constant currency.
It also expects free cash flow of $3 billion (€2.6 billion) plus, and dividend growth outpacing adjusted EPS growth.
Chief executive officer, Dirk Van de Put said, “With strong leadership in our categories, an unparalleled portfolio of global and local brands and a solid footprint in fast-growing markets, we are uniquely positioned to lead the future of snacking.
"We have developed a clear strategic plan to accelerate our growth and drive attractive total returns centered around three strategic priorities: accelerate consumer-centric growth, drive operational excellence and build a winning growth culture.”
Outlook
The company also reaffirmed its full-year 2018 outlook, anticipating organic net revenue growth between 1% to 2%.
It also expects share repurchases to amount approximately to $2 billion (€1.7 billion) in 2018.
In its outlook for 2019, the snacking group expects organic net revenue to increase 2% to 3%, adjusted EPS to grow 3% to 5% on a constant currency basis, and free cash flow amounting to approximately $2.8 billion (€2.4 billion).
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
