Mondelēz reports 9.5% net revenue surge in Q2, raises full-year organic net revenue guidance
USA – Mondelēz International, one of the world’s largest snacks companies, has reported a 17% net revenue growth in Q2 2023 financial results compared to 9.5% in the year-ago period, enabling it to raise the group’s full-year outlook for organic net revenue.
The group’s revenue of US$8.51 billion in Q2, compared with the US$7.27 billion recorded in the same period last year. Organic net revenue growth stood at 15.8%.
“Overall, the consumer remains resilient, with elasticities holding up relatively well in chocolate and biscuits,” CFO Luca Zaramella said in a call with analysts.
In Latin America, the company’s second-quarter revenue grew 40.2% to US$1.23 billion, whereas its Asia, Middle East & Africa net revenue stood at US$1.61 billion, representing a 4.8% increase.
Net revenue growth in emerging markets business was 17.8%. Meanwhile, the company’s developed markets posted net revenue growth of 16.4%, a significant increase on the 2.7% figure reported in the prior-year period.
In Europe, Mondelēz witnessed an 11.4% increase in sales to $2.93 billion, while its North America region saw 22.7% growth to US$2.74 billion.
“I am pleased with our second quarter results, which demonstrate broad-based strength across our business, with strong, profitable top-line growth in all regions and categories,” said Dirk Van de Put, Chairman and Chief Executive Officer.
He noted that a continuous reinvestment in our brands and capabilities, combined with ongoing price execution, cost discipline, and strong volume/mix performance drove the results.
“Our strong first-half performance and category resilience provide confidence to raise both our net revenue and earnings outlooks for the year,” Van de Put pointed out.
The company continued its efforts to refocus, reshape and narrow its portfolio, announcing plans to shutter its Enjoy Life Foods baked goods factory in Indiana, US, during the quarter.
For 2023, Mondelēz expects 12+ percent Organic Net Revenue growth versus the prior outlook of 10+ percent, which reflects the strength of its year-to-date performance.
“Now that pricing is 100% secured, we expect volume and revenue growth, as well as margin improvement for Europe,” Zaramella added.
At the same time, Mondelez has sold its remaining stake in Keurig Dr Pepper for US$704 million in proceeds, it said in a filing, according to Reuters.
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