Mondelēz International recorded a 0.2% rise in its 2018 net revenue as growth in North America and Europe was weighed down by struggling sales in Latin America.
The company, which owns brands such as Oreo, Milka and Cadbury, posted net revenue of $25.94 billion for the year. Operating income was down 4.3% to $3.31 billion.
Mondelēz International CEO Dirk Van de Put.
In a disappointing fourth quarter, the snacks maker saw its revenue decline 2.8%, partly driven by the impact of currency. While fourth-quarter revenue in Latin America was down 15.2%, sales increased 1.6% in North America as the firm continues growth in the face of changing consumer preferences.
Mondelēz CEO Dirk Van de Put said: “Our fourth-quarter and full-year 2018 results demonstrate the power of our brands, the strength of our global footprint and the potential of our strategic plan.
“We delivered on our key financial and strategic commitments for the year, including solid top-line and bottom-line growth and strong cash flow generation. In 2019, we will continue to progress against our new strategy, which includes new investments to drive organic revenue growth and operational excellence across the organisation.”
During the fourth quarter, the company expanded its research and development capabilities with a new facility in India and a $5 million expansion of its technical site in Poland. Both investments form part of the company’s $65 million R&D strategy.
Meanwhile, in a move to increase its focus on snacking, Mondelēz offloaded its non-core cheese business in the Middle East & Africa in December.
Earlier this month, the company revealed plans to move its global headquarters from the Chicago suburb of Deerfield to a new site in the city’s West Loop. It will reportedly relocate around 400 employees from the existing facility in April 2020.
For 2019, the company said it expects organic net revenue growth to be between 2% and 3%.
© FoodBev Media Ltd 2019