Power Brands Help Organic Revenues at Mondelez International
27 Oct 2016 --- Mondelez International has reported that its quarterly revenues dropped 6.6 percent to $6.4bn but the performance of key brands such as Oreo and Cadbury Dairy Milk help push up organic revenues up by over one percent.
Irene Rosenfeld, chief executive, hailed that Mondelez was building a “more streamlined company” which is positioned to deliver “profitable growth”.
The US food giant is undertaking a $3 billion cost-saving initiative, which includes opening a number of more efficient manufacturing plants.
In August this year, Mondelez ended its pursuit of Hershey after its snacks rival “unanimously” rejected a $23bn bid.
In Q3, revenues were down 30 percent to $868m in Latin America; up 2.5 percent to $1,123bn in Asia Pacific; down 7.3 percent to $543m in Eastern Europe, Middle East & Africa; down 3.2 percent to $2,104bn in Europe and down 0.2 percent to $1,753bn in North America.
The company’s shares were up over two percent to $43.75 following the results.
Rosenfeld said: “Our third quarter results underscore our continued commitment to improve operational efficiency, expand margins and profitably grow volume while also investing in strategic growth initiatives for the longer term.”
“In the face of challenging market conditions, we're building a stronger, more streamlined company that is well positioned to deliver sustainable, profitable growth and attractive cash generation.”
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