Mondelēz International has witnessed a 12.4% increase in second-quarter net revenue and raised its full-year guidance, as sales in emerging markets continue to bounce back.
The owner of Toblerone and Oreo recorded revenues of $6.64 billion in Q2, which it says was driven by organic net revenue growth of 6.2%, favourable currency and incremental sales from the company’s acquisitions of Hu, Grenade and Gourmet Food.
The company recently entered an agreement to buy Chipita, a manufacturer of cakes and pastries in Europe.
For the three months ended 30 June, Mondelēz saw its emerging markets grow by 19.6% in net revenue including double-digit growth in Brazil, India, Russia and Mexico. This continues improvement seen in Q1 where the unit recorded 6% growth following a 2.5% decline in Q4 2020.
“We remain encouraged by the resiliency and underlying strength of our emerging market, while we continue to invest behind attractive growth opportunities for the long term,” said Dirk Van de Put, chairman and CEO of Mondelēz International, in a conference call.
He added: “We are also expanding our presence in emerging markets, where we continue to gain distribution in key countries like China and India with another 60,000, and 20,000 stores added this quarter.”
The company’s developed markets, however, posted net revenue growth of 8.9%.
In Europe, Mondelēz witnessed a 15.7% increase in sales to $2.47 billion; while the North America region only saw a 1.1% increase to $2.05 billion.
In the Latin America region, the company’s second quarter revenue grew 30.9% to $669 million. Meanwhile, Asia, Middle East & Africa net revenues stood at $1.45 billion, representing a 17.4% increase.
Mondelēz is raising its organic sales outlook for the full-year to an upwards of 4% growth, compared to its previous expectations of +3%.
Van de Put continued: “Mobility is increasing as restrictions ease but at-home consumption remains elevated and it appears that higher levels of working from home and shopping online are here to stay. More time at home, the desire for trusted and comforting brands and the return of impulse and on-the-go consumption are driving sustained growth in our core categories.”
© FoodBev Media Ltd 2022
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