USA – Mondelēz International has reported an 8% rise in sales for Q3 mainly driven by elevated demands for its confectionery products as markets open up and people travel more across the globe.
Sales for the quarter rose to US$7.18 billion, from the US$6.67 billion that was recorded during the same period last year.
The rise in sales revenue was driven by favorable currency, organic net revenue growth of 5.5% and incremental sales from the company’s acquisitions of Hu, Grenade and Gourmet Food.
Net income at Mondelez in the three months ended Sept. 30 was US$1.25 billion, or 90¢ per share on the common stock, up 15% from US$1.12 billion, or 78¢ per share, a year earlier.
“We delivered strong revenue and earnings growth in the third quarter with broad strength across both developed and emerging markets,” said Dirk Van de Put, chairman and chief executive officer.
“Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation.”
Van de Put, however noted that sustained volatility in the supply chain due to labor shortages and impacted production due to a recent factory strike dampened growth, limiting the company’s potential during the quarter.
Mondelez expects the elevated inflation and logistics volatility to persist, but remains confident in its plans to deliver on its financial algorithm, supported by among other things compounding brand investments and pricing adjustments.
Despite the challenges, Mondelez has updated its 2021 outlook from guidance issued three months earlier and now forecasts net revenue growth at about 4.5% compared with its prior forecast of an over 4% increase.
A search for mission-driven startups
Meanwhile, the maker of the popular Oreo snack brand is accepting applications for CoLab, its startup engagement program led by the company’s SnackFutures innovation and venture hub.
“We are thrilled to launch CoLab 2022, and particularly excited about bringing in mission-driven brands because we know companies grounded in purpose are in consumer demand and have high growth potential,” said Brigette Wolf, global head of SnackFutures.
“We can’t wait to see their vision for creating a snacking world that is good for people, kind to the planet and deliciously fun.”
Launched earlier this year, CoLab is a 12-week program offering workshops, one-on-one mentorship and a US$20,000 grant to up to 10 startups.
The program, in its second year, will focus on mission-driven snack brands committed to creating a positive impact on social, environmental and human well-being.
Mondelez will provide tools, technologies, access to company leadership and industry expertise while gaining insights, capabilities and potential investment opportunities.
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