Mondelez stays on track and buys croissants

Milka manufacturer Mondelez is on track after a strong second quarter. Sales rose by 12.4 per cent, and the profit was also higher than expected. The confectionery giant is therefore going on an acquisition spree.

Confidence in snack strategy

Mondelez, the company behind brands such as Lu, Milka and Oreo, is pleased with the past second quarter. Turnover increased by 12.4 per cent, thanks to the earlier acquisitions of Hu, Grenade and Gourmet Food. On a stand-alone basis, sales were up 6.2 per cent because, despite consumers buying more again and prices going up, consumption outside the home is still lagging due to the Covid restrictions.

Nonetheless, the operating margin rose 20 basis points to 39.9 per cent, even though raw material costs were higher and consumers were buying products with lower margins – it is being called an “unfavourable product mix”. CEO Dirk Van de Put noted that all key metrics performed well, from sales to profitability to cash position. The vast majority of regions, categories and brands are also performing well, he says. 

Hence, Van de Put has complete confidence in the current strategy, which he intends to reinforce by remaining consistent and investing further. Mondelez also announced another European acquisition: the confectionery producer is buying Chipita, a Greek manufacturer of packaged croissants and crisps. The company is mainly active in Central and Eastern Europe. The acquisition is expected to be completed in the next nine months. Apart from that, Mondelez is now counting on organic sales growth of more than 4 per cent for this year.