Despite a double-figure price increase and obesity concerns, consumers continue to snack on plenty of biscuits and chocolate. The best is yet to come, Mondelez CEO Dirk Van de Put believes.
12 % price hike
Despite price increases averaging 12 % in the third quarter, Mondelez managed to sell 3.8 % more sweets from brands such as Oreo, LU, Milka and Côte d’Or. This led to an organic sales growth of 15.7 %: profitability grew by double digits in all regions. The brand manufacturer therefore raises expectations for the full financial year – already for the third time: turnover is now expected to grow by 14 to 15 % (up from the 12 % previously forecast) and net earnings per share by around 16 % (also up from 12 % previously).
Recently, analysts expressed their worries about the outlook for manufacturers of unhealthy food brands: the hype around appetite suppressant drugs like Ozempic could lead to a drop in sales of high-calorie food However, Mondelez clearly has not yet suffered from that and its consumers continue to snack.
Van de Put said that he believes the best is yet to come: his company is strengthening and reshaping its portfolio, continuing to invest in its major brands, developing digital capabilities and betting on revenue growth management to continue growing in the coming years.
