Jul 29, 08:19 PM

Mondelez Beats Estimates but Affirms Outlook as Cocoa Costs Bite

Mondelez International reported second-quarter revenue of $8.98 billion, topping the $8.84 billion analysts expected, as price increases and solid demand outside North America offset weak volumes. Adjusted earnings rose to $0.73 a share from $0.68 anticipated, while reported earnings came in at $0.49 a share on net income of $641 million. The snack maker’s adjusted operating margin was 14.3%, and adjusted gross margin slipped to 33.7%, a 6.8-percentage-point decline from a year earlier, reflecting historically high cocoa costs. Net revenues grew 7.7% year over year, with organic revenue up 5.6% despite a 1.5% drop in volume and mix. Sales in North America fell 3.4% as lower-income shoppers curtailed discretionary spending, prompting the company to expand lower-priced offerings. Chief Executive Officer Dirk Van de Put said Mondelez remains confident in its ability to deliver “amid a challenging environment” thanks to robust growth in most regions. Management reiterated its full-year forecast for roughly 5% organic revenue growth and an about 10% decline in earnings per share, citing “unprecedented” cocoa inflation. Mondelez shares slipped 3.3% in post-market trading but remain up 17% for the year, outpacing the S&P 500’s 8.3% gain.

#Mondelez International #North America #Dirk Van de Put #Mondelez

Written with ChatGPT .

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