Mondelez International has reported better-than-expected results for its second quarter with revenue falling 9.2 per cent to $7.66 billion.
Net profit fell 34.7 per cent to $406 million in the three months to June 30. Operating profit was down 12.1 per cent to $841 million. One-off costs and currency fluctuations were reflected in the results.
On an underlying basis, the snacks group saw revenue rise 4.3 per cent, operating profit jumped 10.2 per cent and net profit rose by 11.5 per cent.
Cost-cutting measures, including factory closures, and increasing prices, all helped the results, said the group.
"Our strong second quarter results reflect continued execution of our transformation agenda," said Irene Rosenfeld, chairman and CEO of Mondelez.
"With the creation of the coffee joint venture now complete, our portfolio is focused even more on snacks. In addition, we're continuing to make excellent progress driving supply chain productivity and overhead cost reductions to deliver top-tier margin expansion and earnings growth." This provides additional fuel to step up investments in marketing, sales and capacity expansion to accelerate revenue growth and improve market share.
She continued: "We're building upon this strong year-to-date performance, and have updated our 2015 outlook accordingly."
For full year 2015, Mondelez increased its organic revenue growth target and expects to capitalise on the margin expansion momentum in its base business to offset the margin dilution related to the coffee transaction.
"As a result, we remain on track to deliver double-digit Adjusted EPS growth on a constant currency basis, and are increasingly confident in our ability to deliver our 2016 Adjusted Operating Income margin target of 15 to 16 per cent."
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