Mondelez, the world’s largest snacks manufacturer, has reported quarterly results that were better than expected. Price increases were not high enough to curb consumers’ sweet tooth.
Retailers try to resist
Demand for Oreo biscuits and Milka chocolate remains resilient in the Americas and Asia: their owner Mondelez saw sales rise at the end of last year. Its European operations were hit by rising energy costs, though. Net sales rose 13.5 % to 8.70 billion dollars (8 billion euros) in the three months ending 31 December.
Thanks to strong demand in countries such as Brazil, China and India, sales in emerging markets rose by 23.3 %, while developed markets grew by 8.2 %. In Europe, the American biscuit manufacturer had to increase its prices, which had an impact on sales. Nevertheless, adjusted earnings also beat expectations at 0.73 dollars per share.
Mondelez started the new year with further price increases in Europe, which were immediately met with resistance from retailers. As a result, margins may decline in the first quarter and possibly the second quarter. Nevertheless, the company expects profit growth of between 5 and 9 % in 2023. Net sales are expected to increase by 5 to 7 %.