Mondelez International benefits from price increases and strong demand in emerging markets

 

Net revenue for the third quarter ended Sept. 30 rose 7.8 % to USD 7.18 bn, surpassing estimates of USD 7.03 bn. Net revenue from its emerging markets segment grew 12.9% to USD 2.58 bn in the third quarter, following a 3.1% fall last year. Excluding items, the Cadbury chocolate maker earned 70 cents per share on a constant currency basis, compared with expectations of 70 cents.

Demand for its chocolate, biscuits and snacks has bounced back across China, India, Latin America and other emerging markets after tepid sales last year, when the economic toll of the pandemic dealt a sharp blow to consumer spending in those regions. The snack concern is now doubling down on those markets by increasing production lines to ramp up capacity rather than open new facilities, in an effort to save costs.

“We delivered strong revenue and earnings growth in the third quarter with broad strength across both developed and emerging markets. Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation,” said Dirk Van de Put, Chairman and CEO of Mondelez International. “We expect elevated inflation and logistics volatility to persist, but remain confident in our plans to deliver on our financial algorithm, supported by compounding brand investments, pricing as necessary, distribution expansion and our robust ESG agenda, including our recently announced target of net zero emissions by 2050.”