US – American multinational snack and food company Mondelēz International has reported 7.9% growth in first-quarter net revenue to US$7.24 billion, driven by organic net revenue growth of 3.8%, favourable currency and the impact of its acquisitions of Give & Go and Hu.
The owner of Oreo and Cadbury snack brands says that part of the of the growth could also be attributed to the strong growth it experienced in emerging markets.
Following a 0.5% decline in 2020, Mondelēz’s Asia, Middle East and Africa business delivered 16.2% growth in net revenue for Q1, according to a statement from the company.
In North America, Mondelēz saw 4.3% growth in net revenue for the first quarter while its unit in Latin America region witnessed a 7.9% decline, marking an improvement on Q4 2020 when it saw a 15.4% decrease in net revenue.
Mondelēz’s Europe business recorded a 10.2% year-over-year rise in net revenue for Q1 and the region is reported to have also generated the largest amount of revenue for the company overall, with nearly US$2.85 billion worth of sales.
“Our first-quarter results demonstrate that we are emerging from the Covid-19 pandemic stronger, as we continue to build upon our track record of robust growth, profitability and cash generation,” said Dirk Van de Put, Mondelēz chairman and CEO.
Mondelēz has forecast upwards of 3% organic net revenue growth for 2021.
Carlsberg reports “good start to the year”
Meanwhile, Danish brewing company Carlsberg is a happy lot after managing to record a volume growth of 12.8% in the first quarter, as a strong performance by China offsets the on-trade plummet in Western Europe.
According to the company’s results, china recorded more than 50% organic volume growth during the quarter driven by Chinese New Year activities, premium brands and partly supported by easy comparables as Q1 2020 was heavily impacted by the outbreak.
The brewer’s Asia and Central & Eastern Europe businesses also performed remarkably well during the quarter, while Western Europe remained significantly impacted by lockdowns and restrictions across the region.
In Western Europe, volumes fell organically by 5.8% and revenue dropped 14.9%. Markets such as Norway and Poland continued last year’s growth trajectory, but markets with high on-trade exposure declined, particularly in the UK and Switzerland.
Once again, Carlsberg’s alcohol-free brews and craft and specialty category performed well, with organic volume growth of 24% and 13%, respectively.
Carlsberg’s revenue grew organically by 3.8% to DKK 13 billion (US$2.11 billion), driven by organic volume growth of 11.5% as recovery was strong in many markets.
While uncertainty remains high, in the light of Carlsberg’s “good start to the year”, the company has raised the bottom end of its earnings guidance for 2021 – expecting operating profit within the range of 5-10%, compared to the previous 3-10%.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE