What’s happening at Mondelēz International – Q3 2025 summary
- Mondelēz is considering price cuts to improve sales
- Volumes declined 4.6% as pricing increased globally
- Net revenue rose 5.9% but gross profit fell by $387 million
- Europe saw 12.6% pricing growth and 7.5% volume decline
- Mondelēz expects chocolate volume growth in Europe by early 2026
Mondelēz International‘s Q3 results continue a trend that we’ve seen earlier in the year in Q2: a decline in volumes which contrasts with a steady revenue growth.
In Q3, volume declines are even more significant, whereas revenues are growing less significantly compared with the previous quarter.
CEO and chairman Dirk Van de Put admits that there are “challenging” times ahead for the snacking multinational, although with cocoa prices stabilising, there is hope on the horizon.
Mondelēz International Q3 results in numbers
- Net revenue growth is 5.9% and organic net revenue growth is 3.4% compared with the previous year. In Q2, the company saw a 7.7% net revenue growth and 5.6% growth in organic net revenue
- Volume/mix has declined by 4.6%, compared with a decline of 1.5% in Q2
- Gross profit declined by $387m (€332m)
- Diluted EPS has declined by 9.5% to $0.57 (€0.49)
- Adjusted EPS has declined by 24.2% to $0.73 (€0.63)
- Organic net revenue growth was the strongest in Asia, Middle East and Africa, with a 5.3% increase. The area saw a 4% decline in volume/mix complemented by a 9.3% increase in pricing
- Organic net revenue growth was also strong in Europe, increasing by 5.1%. Europe saw a 12.6% increase in pricing and a 7.5% decline in volume/mix
- In Latin America, organic net revenue grew by 4.7%, with an 8.7% increase in pricing and a 4% decline in volume/mix
- It was only in North America where organic net revenue declined, and only by 0.3%. The region saw a 1.5% increase in pricing, and a 1.8% decline in volume/mix
Mondelēz sales hit by cocoa prices
While Mondelēz is still seeing revenue growth, its gross profit has declined significantly.
Sales have also been hit. In all geographies, volumes are down. Conversely, pricing has increased across the board.
This contrast is seen most significantly in Europe, where pricing has risen the most and volumes have experienced the biggest decline.
Conversely, pricing in North America has only marginally increased, and its volume decline is the lowest out of all geographies.
The cost of cocoa as a commodity is leading the company to implement price increases on many of its products. As key players in chocolate tablets, which have the largest cocoa content compared to other chocolate types, Mondelēz is especially vulnerable to price increases.
Cocoa prices are not only relevant for explicitly chocolate products, however: brands such as Oreo and Chips Ahoy also include cocoa.
As well as changing the price, Van de Put suggests that the company may reduce the size of the 300g bar to 250g.
Consumer confidence in Europe still strong
Consumer confidence in Europe remains unchanged since last quarter, says CEO Dirk Van de Put, despite substantial price increases in products containing cocoa. Chocolate is operating in line with the company’s expectations.
However, there have been some “pockets of pressure” on Mondelēz. For example, some competitors have not increased pricing as much as Mondelēz itself, although this has recently begun to shift, with competition beginning to price more.
The company is aiming to mitigate declines by focusing on hitting the right price points for consumers, working out how much pricing they can take. It is also focusing on promotion and the introduction of new flavours and formats.
From here on, Van de Put says, the company expects to see a significant improvement in Europe. In fact, predicts CFO Luca Zaramella, the company’s chocolate business could see volume growth in 2026.
US continues to see decline
Revenues continue to see decline in the US. This is driven by deep consumer concern with the economy, explains Van de Put.
Economic uncertainty has led to value-seeking behaviour, with consumers often choosing smaller pack sizes or looking for promotions. The US government shutdown could also affect the consumer’s confidence.
Such economic anxiety means that consumers are prioritising the essentials, with snacking categories not often seen as such.
However, some segments are doing well: premium brands and cakes are seeing success, as are Mondelēz’s better-for-you segments, such as high-protein products. Even the company’s vegan chocolate brand, Hu, is doing well.
Mondelēz aims to finetune its pricing strategy for the US, as well as look at its promotions.
Despite being hit hard by the cocoa crisis, Mondelēz is, overall, optimistic looking ahead as prices begin to stabilise.
