Mondelēz International posted better-than-expected first-quarter results with net revenues up 5.5% to $6.77 billion.
The company, which owns brands such as Belvita, Chips Ahoy! and Milka chocolate, benefitted from a strong performance in its European unit, with sales up 14.4% to $2.7 billion, and in emerging markets.
Sales from the company’s power brands, including Ritz crackers, Cadbury and Trident gum, surged by 8.2% to $5.14 billion.
However, net revenues in North America were down 1.3% as consumers continue to shift to low-sugar snacks. For the quarter, the company’s gross profit was up 13.1% to $2.85 billion.
Mondelēz International CEO Dirk Van de Put
Mondelēz CEO Dirk Van de Put, who took over from Irene Rosenfeld last November, said: “We had a good start to the year with improving top-line momentum and continued progress in margin expansion driven by strength in Europe and AMEA.
“We continue to see encouraging snacking category growth trends, especially in emerging markets. We remain focused on executing our 2018 plan while making good progress developing our long-term strategic framework.”
So far this year, Mondelēz has boosted its activity in Asia. In February it opened a new research and development facility in Singapore as part of a $65 million investment programme to enhance the company’s ability to create innovative new products.
Last month it opened $90 million manufacturing facility in Bahrain which will have a production capacity of 45,000 tonnes per year.
And Mondelēz head of commerce for Asia Middle East and Africa Ganesh Kashyap has said that the company’s Indian unit will be vital to building its global online sales by 2020.
For 2018, Mondelēz said it expects organic net revenue growth of between 1% to 2%.
© FoodBev Media Ltd 2024