Mondelēz International has reported a 7.8% rise in third-quarter net revenue, supported by price increases and the performance of its emerging markets business.
The owner of Cadbury and Oreo posted net revenue of $7.18 billion, beating analysts’ average estimate of $7.03 billion, according to IBES data from Refinitiv, cited by Reuters.
The rise in net revenue was driven by favourable currency, the impact of the company’s acquisitions of Hu, Grenade and Gourmet Food, and organic net revenue growth of 5.5% – which in turn reflected volume and price increases.
Mondelēz’s emerging markets business – which recorded net revenue increases of 6% and 19.6% in Q1 and Q2, respectively – continued to boost the snack giant’s performance in Q3, delivering 12.9% growth in net revenue.
In the third quarter, Mondelēz’s Asia, Middle East and Africa business delivered 10.8% growth in net revenue, while the company’s Latin America region witnessed a 23.1% rise.
Generating $2.71 billion in sales, Mondelēz’s Europe business recorded a 7.4% year-over-year rise in net revenue, while the company grew its Q3 net revenue by 1.4% in North America.
“We delivered strong revenue and earnings growth in the third quarter with broad strength across both developed and emerging markets,” said Mondelēz chairman and CEO, Dirk Van de Put.
“Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation.”
Mondelēz now expects organic net revenue growth of approximately 4.5% for the full year, an increase on its previous projection of upwards of 4% growth.
The company has also announced it is committing to a 2050 target of net zero greenhouse gas emissions across its full value chain.
Mondelēz says that it will take an end-to-end approach in its efforts to reach the target, encompassing areas including ingredient sourcing, packaging, transportation and manufacturing efficiencies.
“We’re transforming how we do business across our operations and with the suppliers and farmers we work with – from seeking to improve cocoa farming practices in West Africa to promoting regenerative agriculture in wheat fields in the Midwest United States,” said Van de Put.
© FoodBev Media Ltd 2021
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