Financial results

Mondelēz maintains positive outlook for 2024 on back of strong Q1

By Anthony Myers

- Last updated on GMT

'We are continuing to make significant investments in our brands,' said Dirk Van de Put, Mondelēz International, chair and CEO
'We are continuing to make significant investments in our brands,' said Dirk Van de Put, Mondelēz International, chair and CEO

Related tags Mondelēz International Cadbury Chocolate Confectionery financial results

Mondelēz International has maintained the company expects Organic Net Revenue growth of 3% to 5% in its 2024 Outlook after the Cadbury parent beat market expectations for first-quarter sales and profit.

The firm posted net sales of $9.29 billion for the first quarter, beating analysts' average estimate of $9.16 billion. This was due to consistent demand for chocolates and salted snacks despite rising costs.

In a call to analysts and media, Dirk Van de Put, Mondelēz International, chair and CEO, said: “We posted solid top-line results in the first quarter, coupled with strong earnings and free cash flow generation. We continue to see momentum in emerging markets where consumer confidence remains strong, and our categories remain resilient.”

Challenges

Van de Put acknowledged the challenges faced in the quarter, including disruptions with European clients and the boycott of Western products in the Middle East and Southeast Asia. However, he emphasized the company's resilience, stating that these were 'one-off factors' that did not undermine the overall performance.

“We delivered another quarter of strong gross profit dollar growth through ongoing cost discipline and sound pricing,” he said.

Van de Put confirmed Mondelez continues accelerating its strategy of global snacking leadership and driving sustainable long-term growth.

He underscored the company's commitment to growth, stating, "We are continuing to make significant investments in our brands and capabilities, driving distribution gains, and leveraging synergies from our recently acquired assets. This strategic approach is designed to inspire confidence in the company's future."

During a continued operating environment that he described as “challenging and dynamic,” he said the company is focused and agile in dealing with the short term and executing against its long-term growth strategy.

Cocoa inflation

“While surprising but temporary, the cocoa inflation does not affect the fact that our categories remain durable and our growth opportunities remain sizable.”

Zak Stambor, senior analyst with eMarketer, told Reuters: "While Mondelez has strong brands in resilient categories such as chocolate and biscuits, consumers will trade down if prices rise too high.”

Q1 Highlights

  • Net revenues increased +1.4% driven by Organic Net Revenue1 growth of +4.2% with underlying Volume/Mix of -2.1%
  • Diluted EPS was $1.04, down 31.6%; Adjusted EPS1 was $0.95, up +16.3% on a constant currency basis
  • Cash provided by operating activities was $1.3 billion, up $0.2 billion versus prior year; Free Cash Flow1 was $1.0 billion, up $0.1 billion versus prior year
  • Return of capital to shareholders was $1.1 billion

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