US – American multinational confectionery, food, beverage, and snack food company, Mondelēz International, has posted a net revenue of US$7.7 billion, an increase of 8.1% in the third quarter of 2022, over the previous year’s financial results.
Despite wider economic turbulence, the company said the key upturn in growth is on the back of organic net revenue and underlying Volume/Mix growths of 12.1% and 0.7%, respectively.
According to CEO Dirk Van de Put, the company owes the improved position to the overall resilience of the company’s global businesses, including recent acquisitions, such as Clif Bar, helping to create an annual US$1+ billion global snack bar business.
However, due to market challenges, Mondelēz’s gross profits for the third quarter declined by 7.5% to US$2.6 billion against the same period the previous year, with operating income also being down 47.5% to $679 million for the period.
In Asia, the Middle East, and Africa, Mondelēz recorded 4.6% growth in net revenue, in Latin America the chocolate giant witnessed a 21.6% rise, and in North America a 19.6% increase, while in Europe the business recorded a 2.4% decrease in net revenue.
Van de Put, said: “Our third-quarter performance demonstrates the resilience of our snacking categories, the strength of our brands, broad-based net revenue growth of both our emerging and developed markets, effective execution of pricing, and solid volume growth, enabling us to raise our full-year revenue and earnings outlook.”
“Despite ongoing macro volatility, we remain focused on executing against our strategy and delivering on items we can control, including supporting our brands and retaining healthy volumes, while continuing to deliver strong profit dollar growth and long-term share gains.”
Consequently, in 2022, the company updated its 2022 financial outlook and now expects a 10 percent growth in organic net Revenue growth and Adjusted EPS versus the prior outlook of 8%, even with wider international issues impacting the sector including logistics tests, retail inflation, and the energy crisis negatively influencing many companies’ performance.
In addition, the company has confirmed investing an additional US$600m by 2030 in its cocoa sustainability program, Cocoa Life, for a total investment of US$1bn since the start of the program 10-years ago.
Introduced in 2012, the Cocoa Life program was created to secure a more sustainable cocoa supply and establish an integrated approach to tackle the root causes of systemic challenges in the cocoa industry around farm productivity, farmer livelihoods, community development, and deforestation.
Ten years later, the program has reached a critical scale, working with over 200,000 farmers and the new investment seeks to increase the scale of the program and to increase the number of farming households the company works with to 300,000 by 2030.
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