Mondelez International has been able to limit its continuous turnover drop better than expected in the second quarter. Higher prices and fewer costs have helped the company (a little) to resist the strong dollar's impact.
Still a strong setback
Mondelez' turnover still dropped 9 % in the second quarter, compared to a year ago, from 8.44 billion dollars to 7.66 billion dollars (almost 7 billion euro). Analysts had even only expected a 7.49 billion dollars (6.8 billion euro) turnover, but even this better result means the company's seventh straight quarterly turnover drop. In Mondelez' biggest market, Europe, turnover fell 16.7 % to 2.82 billion dollars (2.5 billion euro).
Profit was hit even harder than turnover, plummeting 35 % from 622 million dollars to 406 million dollars (370 million euro).
For its full fiscal year, the company expects to have a 3 % like-for-like turnover growth at least, after previously forecasting a 1 % turnover increase. Higher prices and more marketing investments will have to help boost turnover and overcome the sale of Mondelez' coffee division, which merged with DE Master Blenders into Jacobs Douwe Egberts. Starting next quarter, the results of this division will no longer feature in Mondelez' overall results.