High cocoa prices weigh on Mondelez profits

After a strong fourth quarter, Mondelez International, owner of well-known brands such as Oreo, Milka, and LU, reports growth in revenue for the full fiscal year but a sharp decline in profits due to “unprecedentedly high” cocoa prices.

Cautious outlook

Mondelez International saw its net revenue increase by 5.8% to $38.5 billion (approximately €36 billion) last year, mainly due to price increases, as volumes were under pressure. Profits also declined due to high raw material costs, including unprecedented increases in cocoa prices, even though lower production costs provided some compensation, according to the company. Net profit fell by 46.8% to $2.4 billion (approximately €2.3 billion). However, profitability improved in the fourth quarter.