Mondeléz Group, the global snack food company, is known for its Oreo biscuits, Cadbury chocolate, 3bit, Milka or Toblerone, and its repertoire also includes Jacobs or Tassimo coffee. Financial results for the latest quarter beat expectations and earnings per share came in at $0.89, beating forecasts by $0.09. Revenue reached USD 9.17 billion, also beating estimates of USD 8.44 billion. The stock has risen 11.48% over the last twelve months.
To ensure constant growth, Mondelēz Group has created the CoLab program and is currently accepting applications that can be submitted by startups in the food industry. The program includes workshops, virtual sessions, individual mentoring and basically everything these startups across Europe and the U.S. might need. The project focuses on sustainability, innovative components, and the overall production process. In this way, they will contribute to creating a sustainable environment, ensuring cleaner brands and production flexibility.
Mondeléz Group's share performance over the last five years (Source: Google)
Based on these results, Mondeléz has raised its forecasts for annual profits by around 10%, as demand for the popular chocolate remains high, despite price increases due to the still noticeable inflation. Food companies have adopted a strategy of raising prices to protect financial results from high production costs, and consumers have responded with only minor resistance. Sales volume growth still maintains a healthy growth and the products they have under their Mondelēz Group brand tend to keep a solid consumer base. According to the company's management, the price increases are not over yet and some negotiations are needed. Rival company Hersey Co has taken the same position and estimates its annual sales at the upper end of forecasts due to strong demand. Mondelēz plans to continue this positive growth, relying on its loyal consumers and the quality of its products.
