Mondelēz has reported a net growth for its 2018 second quarter when compared to the same period in 2017, from $5.98 billion to $6.11 billion, an increase of 2.1%. The company, the maker of top selling brands Ritz, Oreos, and Cadbury’s, says this is largely driven primarily by ‘a favourable impact from currency and commodity hedging activities’.
The company was hit by a cyber attack in August of last year, but despite this, overall revenue increased for its second quarter of 2018.
Further to this, operating income fell from $636 million to $481 million over the year, a loss of 24.3%, caused largely by the impact from pension participation changes in North America.
Dirk Van de Put, chairman and chief executive officer of Mondelēz, said: “We delivered a strong second quarter, in both developed and emerging markets, building on the momentum created in the beginning of the year.
“We posted solid top-line results with good performance across all regions. We remain focused on executing against our plans and will share the results of our strategic review with investors in September.”
Compared to the previous year, Mondelēz Europe saw an increase in revenue of 6.1%, and North America saw an increase of 6.5%. Mondelēz invested $500 million in its acquisition of US cookie company Tate’s Bake Shop, and also said it has invested $200 million into its Opava biscuit plant since 2014 in order to improve its competitiveness in the European market.
Latin America and Asia, and the Middle East and Africa saw losses of 8.7% and 2.4% respectively. The financial result from Latin America comes after news that the company shut down two production facilities in Brazil in March. The loss in the Middle East is despite news of Mondelēz opening a $90 million biscuit production plant in Bahrain in April this year.
Last November saw a change in chief executive officer for the company as Dirk Van de Put took over from Irene Rosenfeld.
© FoodBev Media Ltd 2020
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