Mondelēz International posts third quarter upturn, though market tests persist
Mondelez at this year's Sweets & Snacks Expo. Pic: Neill Barston
Against a backdrop of continuing sector challenges, Mondelēz International has recorded an upturn in its third quarter results for 2024, posting net revenues of $9.2 billion, up 1.9% year-on-year, as the business continues a strong pipeline of innovation, reports Neill Barston.
The company noted that its improved fortunes related in part to price increase that have been brought in amid ongoing inflation within key ingredients markets for sugar and cocoa, which have remained a notable test across the global confectionery sector.
Consequently, net earnings for Mondelēz’s first three months of 2024 stood at $856 million, down against its equivalent figure last year of $988 mn, though the company remained upbeat about its international prospects.
Europe remained its largest market for the business, posting sales of $3.3 billion for the third quarter, followed by the US, at $2.8 billion, and Asia, Middle East and Africa at $1.8 billion.
In its outlook, the business stated that it anticipated an annual growth level of between 3-5 per cent, expanding its operations into areas such as China that have proved profitable for the company.
The company’s core brands, including Oreo have reported strong trading during the year, and its major Cadbury brand has continued celebrations for its 200th anniversary.
As previously reported, the business has continue with engaging with accelerator start-up programmes supporting emerging enterprises across the snacks and confectionery space in both the US and within Europe, which has yielded encouraging results in recent years.
Dirk Van de Put, Chair and Chief Executive Officer, welcomed the latest set of results, which he acknowledged had required an approach of ‘maintaining cost discipline.’
He said: “We posted robust results for Q3, with accelerated top-line growth, strong earnings and attractive cash flow generation. These results were driven by our commitment to executing with excellence across our categories, markets and brands.
“We remain focused on reinvesting behind our brands, driving distribution, expanding our capabilities and maintaining cost discipline. We continue working to accelerate our core business while strategically reshaping our portfolio – for example, through our expanded partnership with Evirth, a leading manufacturer of cakes and pastries in China. We are excited about the opportunity to further leverage our iconic brands and distribution to create more premium offerings in the fast-growing cakes and pastries space.”
