Cadbury-maker Mondelez International revenue increase lead to Mondelez raising annual forecasts boosted by strong demand. Mondelez International revenue was reported at $8.51 billion for the quarter ended June 2023, representing a year-over-year increase of 17%. EPS of $0.76 for the same period compares to $0.67 a year ago.
Mondelez International revenue
The reported Mondelez International revenue compares to the Zacks Consensus Estimate of $8.19 billion, representing a surprise of +3.82%. The company delivered an EPS surprise of +10.14%, with the consensus EPS estimate being $0.69.
Mondelez International (MDLZ.O) on Thursday raised its full-year growth forecasts for the second time this year, helped by robust demand for the Cadbury-maker Mondelez’s snacks and chocolates despite several rounds of price increases.
Cadbury-maker Mondelez International share rose 2.7% in afterhours trading as it also beat estimates for the second quarter.
Demand for price hike
Major packaged-food makers like Hershey (HSY.N), Campbell Soup (CPB.N), Cheerios maker General Mills (GIS.N) and Nestle (NESN.S) have leveraged strong demand to hike prices and shield their margins from higher raw material and transportation costs.
“Strong sales and better productivity drove a solid increase in profitability,” Edward Jones analyst Brittany Quatrochi said.
Candy-maker Hershey also lifted its annual profit forecast earlier in the day, a sign that consumers continued to spend on their favorite cookies, gum and candy.
“Overall, the consumer remains resilient, with elasticities holding up relatively well in chocolate and biscuit,” CFO Luca Zaramella said in a call with analysts.
Cadbury-maker Mondelez’s encouraging results
Mondelez International revenue growth logged in double-digit across regions, including Europe, Latin America and North America. This growth helped improve its margins during the quarter.
Cadbury-maker Mondelez executives on the call said they were “very encouraged by our China business“, particularly in the gum segment.
However, the Chicago-based firm witnessed a volume decline in Europe as it closed price negotiations with retailers “in line with expectations”, CEO, Dirk Van de Put said.
“Now that pricing is 100% secured, we expect volume and revenue growth, as well as margin improvement for Europe,” Zaramella said.
Mondelez International revenue is expected to be a full-year organic net revenue and adjusted per-share profit growth of more than 12%, compared to a prior outlook of a 10% increase.
Separately, Mondelez has sold its remaining stake in Keurig Dr Pepper (KDP.O) for $704 million in proceeds, it said in a filing.
Cadbury-maker Mondelez International revenue geographically
- North America: $2.74 billion versus $2.67 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +22.7% change.
- Europe: $2.93 billion compared to the $2.82 billion average estimate based on five analysts. The reported number represents a change of +11.4% year over year.
- AMEA: $1.61 billion versus $1.59 billion estimated by five analysts on average. Compared to a year ago quarter, this number represents a +4.8% change.
- Latin America: $1.23 billion versus $1.11 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +40.2% change.
Mondelez International share update
Mondelez International shares have returned +0.6% over the past month versus the Zacks S&P 500 composite’s +5.6% change. The Mondelez International share currently has a Zacks Rank #3 (Hold), indicating performance in line with the broader market in the near term.
