Mondelēz lifts Q3 margins as costs ease and snack volumes rise

Mondelēz International’s third-quarter results point to improving snack demand and easing production costs, with organic revenue rising 2.1% year-on-year and adjusted gross margin expanding to 34.2%, up from 30.4%. 

The company has also agreed to acquire quinoa crisp brand Undercover Snacks, extending its push into “permissible indulgence,” and underpinning its snacks-focused strategy. 

Mondelēz’s snack strategy centers on expanding its core chocolate, biscuit, and baked-snack businesses, with a long-term ambition for these categories to generate around 90% of revenue. 

The Undercover Snacks agreement extends this approach into what Mondelēz calls “permissible indulgence” — combining chocolate and frosted coatings with quinoa crisps and simple ingredients. 

Regional results were mixed: organic revenue increased 7.7% in Asia, Middle East and Africa, and 6.9% in Latin America, but fell 2.1% in Europe, all compared with Q3 2025. North America grew 1.6%.

Dirk Van de Put, chairman and CEO at Mondelēz, says: “We delivered strong third-quarter results, driven by broad-based volume growth and robust share performance. We continue to see top- and bottom-line growth momentum across both developed and emerging markets, while significantly reinvesting in our brands, innovation, and distribution.”

The Undercover Snacks acquisition enables Mondelēz to combine chocolate and frosted coatings with quinoa crisps and simple ingredients.“We are resolute in delivering volume-led, compounding earnings growth that creates value for shareholders. We remain confident that our attractive categories, iconic brands, advantaged geographic footprint, and consumer-centric capabilities will sustain our performance for years to come.”

Snack demand in focus

Innova Market Insights reports that 51% of global consumers snack at least twice daily. Its October analysis highlights demand for healthier indulgence through simpler formulations and fewer unwanted ingredients, while flavor remains a leading purchase driver at 68%

Mondelēz’s results follow PepsiCo’s Q3 update earlier this month, which showed improving savory-snack volumes and volume market share. PepsiCo reported organic revenue growth of 3.1%, with international businesses supporting performance, although its North American beverage volumes declined 2%. 

For ingredient suppliers, stronger volumes are also emerging in selected categories. Kerry’s Q3 volume growth accelerated to 4.1%, supported by snacks, meat, dairy, and beverages. Its nine-month revenue nevertheless declined 0.6%, reflecting currency movements, portfolio changes, and lower pricing amid input cost deflation. 

Meanwhile, AAK’s latest Q3 coverage highlighted an 8% decline in operating profit to SEK1.15 billion (US$116.2 million), despite a 1% increase in Chocolate & Confectionery Fats volumes. Its showcase of protein-enriched chocolate and plant-based desserts also points to continued innovation around indulgence and nutrition. 

Outlook maintained

Mondelēz reaffirmed full-year organic growth of at least 2%, adjusted EPS growth of flat to 5% at constant currency and approximately US$3 billion in free cash flow.