A stronger dollar and tough trading conditions resulted in Mondelez International revenue dropping 2.8% in the December quarter as income from its large overseas business slipped across its three main divisions: Asia, Middle East and Africa (AMEA), Europe and Latin America.
The company reported that overall organic sales, which exclude the impact from acquisitions and currency fluctuations, rose 2.5% in the final quarter of 2018, driven mainly by moves to introduce healthier snacks to better serve fitness fanatics and health-minded consumers.
Mondelez’s shares recovered slightly by the end of last week’s trading at $45.57. The latest financial results were announced on Wednesday, January 30.
Mondelez’s North America sales also rose 1.6% and overall net revenue fell to $6.77 billion in the fourth quarter ended December 31, matching analysts’ average forecast, according to Reuters.
Net earnings attributable to the company rose to $823 million or 56 cents per share, from $695 million or 46 cents per share a year earlier.
“Our fourth quarter and full-year 2018 results demonstrate the power of our brands, the strength of our global footprint and the potential of our strategic plan,” said Dirk Van de Put, chairman and CEO. "We delivered on our key financial and strategic commitments for the year, including solid top-line and bottom-line growth and strong cash flow generation. In 2019, we will continue to progress against our new strategy, which includes new investments to drive organic revenue growth and operational excellence across the organization."
Key strategic initiatives
Among its key strategic initiatives for 2019 include a commitment to make all packaging recyclable by 2025 and expand its Cocoa Life sustainability program in Brazil.