Mondelēz sees net revenues rise 7.3%, lowers profit outlook due to ‘incremental costs’
Net revenues increased +7.3% driven by Organic Net Revenue growth of +8.6%, the company reported in its Q1 2022 Results on 26 April.
Gross profit increased $17m, while gross profit margin decreased 260 basis points to 38.4% primarily driven by lower mark-to-market gains from derivatives, the decrease in Adjusted Gross Profit margin and incremental costs incurred due to the war in Ukraine.
The Chicago-based company said it had a profit of 61 cents per share. Earnings, adjusted for non-recurring costs and to extinguish debt, were 84 cents per share.
Analysts said the results exceeded Wall Street expectations with the average estimate for earnings of 74 cents per share.
The Cadbury owner posted revenue of $7.76bn in the QI period, also surpassing expected market forecasts of $7.48bn.
"We delivered strong top-line results in our first quarter, driven by higher pricing and strong volume growth. Our chocolate and biscuit businesses continue to power our virtuous cycle of attractive revenue growth, strong profitability and robust cash flow," said Dirk Van de Put, Chairman and Chief Executive Officer.
Van de Put said Mondelēz is also excited about its recently announced agreement to acquire Ricolino from Grupo Bimbo… adding to its portfolio some of Mexico’s most beloved chocolate and candy brands.
"We expect elevated levels of input cost inflation to continue through the remainder of the year, and we will continue to take necessary actions to offset this dynamic," said Van de Put, said in a conference call with analysts.
The maker of Oreo cookies, Cadbury chocolate and Trident gum said it now expects inflation in the low double-digit range for the year, up from its prior view of about 8%.