Mondelez International: “strong start to the year”

According to the company, gross profit declined USD 256 m to USD 2.953 bn and margin decreased 240 basis points to 39.7% due to unfavorable year-over-year change in currency and commodity hedging activities. Adjusted gross profit increased USD 121 m to USD 2.597 bn at constant currency and margin increased 30 basis points to 39.7%, driven by operating leverage from volume growth, higher pricing and productivity partially offset by input cost increases.
Operating income declined USD 188 m to USD 1.036 bn and margin was 15.8%, down 230 basis points, due to unfavorable year-over-year change in currency and commodity hedging activities, partially offset by lower restructuring program costs. Adjusted operating income increased by USD 48 m to USD 1.094 bn at constant currency and margin was flat at 16.7% due to higher raw material costs and increased selling, general and administrative expenses related, in part, to increased investments in advertising and sales.
"Our strong start to the year demonstrates clear progress against our plans to accelerate volume-led growth by adopting a more consumer-centric and agile mindset,” said Dirk Van de Put, Chairman and CEO. "We continue to see solid fundamentals in our categories and key markets, including good momentum in emerging markets. Our progress reinforces our confidence that the investments we are making behind our global and local brands, our sales capabilities and our innovation will deliver sustainable long-term growth and create value for our shareholders."