With net revenue to $7.24bn and gross profit increased to $515m, the confectionery giant said that the Q1 rise in its 2021 results was driven by organic net revenue growth of 3.8%, thanks to favourable currency and the impact of its acquisitions of Give & Go and Hu.
In an earnings call to investors, Luca Zaramella, Mondelēz Executive Vice President, Chief Financial Officer, said chocolate grew more than 10% for the quarter, with a two-year average of 6.5%.
“Our large chocolate countries such as India, the UK, Germany, Brazil and Russia, all turned in strong results. We are particularly pleased with our Easter performance, considering that mobility restrictions are still in place, for instance, in Europe. From a brand perspective, both Cadbury Dairy Milk and Milka grew double digit.”
Gum and candy
Zaramella said gum and candy continued to see the impact of restricted mobility.
“This business declined approximately 16% during the quarter and 8% on a two-year basis. Comparisons will become easier as we move into the second quarter, though we are expecting a gradual recovery.”
In North America, Mondelēz saw 4.3% growth in net revenue for the first quarter. The company’s Latin America region witnessed a 7.9% decline, marking an improvement on Q4 2020 when it saw a 15.4% decrease in net revenue.
Following a 0.5% decline in 2020, Mondelēz’s Asia, Middle East and Africa business delivered 16.2% growth in net revenue for Q1.
"Our first quarter results demonstrate that we are emerging from the COVID-19 pandemic stronger, as we continue to build upon our track record of robust growth, profitability and cash generation," said Dirk Van de Put, Chairman and Chief Executive Officer.
"We saw continued improvement across emerging markets, healthy demand in developed markets and another quarter of strong share performance. We remain squarely focused on accelerating growth by further strengthening our core brand and expanding our presence in high-growth channels, categories and adjacencies. Our strategy is working, and our business is better positioned than ever before.”
Van de Put told investors that beyond its core categories, Mondelēz is building strong platforms in high growth adjacencies such as cakes and pastries or bars.
“We believe we have distinct advantages that will enable us to seize these opportunities. These include our proven ability to price across the globe, more impactful and high return marketing, increased investments in our brands, ongoing portfolio reshaping to increase our exposure to incremental high growth areas of snacking, continue cost improvements to fuel investments, and increase business clarity and simplification.”
- Full report: earnings release