Mondelēz International has announced its net revenue decreased by 5% during the second quarter of the year to $5.99 billion, partly caused by June’s cyber attack.
Gross profit was also down 7.6%, from $2.52 billion to $2.32 billion. The company had predicted the lower results, as the attack caused widespread disruptions in shipping and invoices.
The half-year figures also show disappointing results, with net revenue shrinking 2.8% to $12.4 billion.
Performance was particularly poor in North America, Mondelēz’s second biggest market by sales. Sales reduced by 8.5% in the second quarter, partly as a result of price competition. In Europe, the company’s largest market, sales were down by 5.3% as consumers shift away from Oreo and Cadbury products towards healthier snacks.
Speaking of the results, outgoing CEO Irene Rosenfeld said: “We delivered strong margin expansion and double-digit EPS growth in the quarter despite the revenue impact from the malware incident at the end of June.
“We’re seeing improved trends in Europe and across many of our emerging markets, and our North America business is on track for a stronger second half. In addition, as a result of our improving free cash flow outlook, we’re increasing our dividend payout.”
Looking towards the year as a whole, Mondelēz said it expects organic net revenue to increase by at least 1%.
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