Mondelēz International posted a 3.7% reduction in net revenue in its third-quarter results as its sales dipped in North America.
The company – which owns brands such as Cadbury, Oreo and Ritz – recorded a 2% fall in organic revenue growth in North America. Reported net revenue for the quarter was $6.29 billion.
Meanwhile, net income attributable to the company was up 21.9% to $1.19 billion in the three months to 30 September.
Organic net revenue – which is defined as net revenues excluding the impacts of acquisitions, divestitures, and currency rate fluctuations – for the quarter was up 1.2%, with a positive performance in Asia, Middle East and Africa, and Latin America making up for the dip in North American sales.
Mondelēz CEO Dirk Van de Put said: “We performed well in the third quarter. We continue to see good momentum in emerging markets, underpinned by solid volume growth and strong execution.
“We are beginning to deliver against our new long-term growth strategy by implementing a more agile innovation model and establishing a new commercial structure that will improve our consumer focus and drive greater local accountability, while igniting our global and local brand and innovation agendas.”
During the quarter, Mondelēz’s opened its first sites in Bangladesh, paving the way for the confectionery giant to introduce products from its global portfolio to the country.
It also revealed plans to release several new ‘low-sugar’ confectionery products in the UK over the next two years, including a new Cadbury Dairy Milk bar containing 30% less sugar.
A team of 20 scientists worked for two years to create a formula for the bar which would replicate the taste of the signature Dairy Milk bar without using artificial sweeteners, while drastically reducing the sugar content of the bars. The company said that the recipe is “the most significant innovation in the brand’s history”.
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