US – Snacks giant, Mondelēz International, has reported a 9.7% net revenue rise for the Full Year ended December 31, 2022, driven by Organic Net Revenue growth of 12.3 percent, and incremental sales from the company’s acquisitions, primarily Chipita, Clif Bar, and Ricolino.
The Chicago- based company had a net revenue increase of 13.5 percent driven by the Organic Net Revenue growth of 15.4 percent and incremental sales from the company’s acquisitions.
The confectionery giant particularly benefited from a strong performance in emerging markets, where volume growth where revenue is up 22% year-on-year–compared to 7% for developed markets–reaching a 12.3% overall growth.
For the fourth quarter, developed market revenues jumped 8.2% with the Latin America market achieving an increase in revenues of 29.7%, booming to 43.2% growth year-over-year. The growth was driven by price action, raising prices by 23.7%.
In Asia, the Middle East, and Africa region volume growth was similar, at 7.4%, with revenue increasing by 12%. In comparison, sales in North America and Europe were fully driven by price changes as the volume sold was untouched from a year earlier–revenue increased by 11.5% in North America and 7.4% in Europe.
“Our 2022 results demonstrate the strength and diversification of our portfolio as we delivered broad-based growth in terms of regions, categories, and brands. We delivered strong gross profit dollar growth, driven by double-digit top-line growth supported by both pricing and volume, enabling robust cash flow generation and significant return of capital to shareholders.”
“These results were underscored by continued strength in emerging and developed markets as well as solid contributions from our recently acquired businesses,” said Dirk van de Put, Chairman and Chief Executive Officer.
The Cadbury chocolate maker said it had announced another round of price hikes in Europe despite reported retailers push back against the move, and the disruption “might also continue” into the second quarter.
The company’s executives see no reason to lower prices or increase promotions for their iconic sweets and snacks.
Van de Put explained that while there is a lot of talk about diminishing inflation Mondelez has yet to see it and therefore continues to price accordingly.
“We are certainly not seeing, for 2023, our costs coming down. We still are seeing double-digit inflation in our cost” driven primarily by continued elevated costs in packaging, energy, ingredients, and labor, he said.
For 2023, the company expects Organic Net Revenue growth of 5 to 7 percent, high single-digit Adjusted EPS growth on a constant currency basis, and Free Cash Flow of US$3.3+ billion.
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