Mondelez International Q3 Results

By Anuja Bharat Mistry

(Reuters) – Mondelez International reported strong third-quarter results on Tuesday, surpassing revenue and profit estimates. The parent company of Cadbury attributed this success to offering products at various price points, leading to improved sales volumes.

Key Highlights:

• Steady Demand: Prices for candies and biscuits ranged from $3 to $4, attracting customers looking for more affordable options.
• Volume Growth: Quarterly volumes increased by 0.3 percentage points, with prices rising 5.1 percentage points.
• Regional Recovery: A demand rebound in Europe, North America, and China compensated for falling volumes in Latin America.

CEO Dirk Van de Put noted, "Consumers are continuing to embrace chocolate and biscuits as everyday indulgences," highlighting brand loyalty.

Analysts suggest that Mondelez's strong brand presence will challenge private-label products' market penetration.

Financial Performance:

• Gross Profit Margin: Adjusted gross profit margin expanded by 230 basis points to 40.5%, benefiting from lower manufacturing costs and higher product prices.
• Quarterly Revenue: Net revenue reached $9.20 billion, surpassing the $9.11 billion analysts expected.
• Adjusted Profit: Adjusted profit was 99 cents per share, exceeding estimates of 85 cents per share.

Furthermore, Mondelez announced plans to acquire a majority stake in Evirth, a Chinese manufacturer of cakes and pastries, while maintaining its annual forecasts. Shares were volatile, rising about 2% post-announcement.