Stock Market News

Toblerone maker Mondelez lifts forecasts on price hikes, firm demand

2023.04.27 18:50


© Reuters. FILE PHOTO: Mondelez International’s Toblerone Swiss milk chocolates are seen in this illustration picture taken July 26, 2021. REUTERS/Dado Ruvic/Illustration

By Granth Vanaik

(Reuters) -Mondelez International Inc on Thursday raised its annual forecasts on steady demand for its chocolates and biscuits despite price hikes.

Packaged food makers have been raising prices to protect profit margins from higher costs, but have seen little opposition from inflation-hit consumers who continue to prefer chocolates and snacks over private-label alternatives.

Revenue from Mondelez (NASDAQ:)’s emerging markets surged 21.4% while it jumped 16% in developed markets.

“Consumers are accepting the higher prices, as seen by the healthy increase in sales volumes,” said Edward Jones analyst Brittany Quatrochi.

Gross margin, however, remained under pressure and fell 80 basis points to 37.6% amid rising costs and push back by retailers and customers in Europe against a price hike in January.

Mondelez said the disruption was “more benign than anticipated” but finance chief Luca Zaramella warned it could “potentially affect the second quarter”.

“We’re only 80% done with the price increases, and we still have some negotiations going on,” CEO Dirk Van de Put said. 

The company now expects 2023 organic net revenue to rise more than 10%, compared to a prior forecast of 5% to 7% growth.

The Oreo maker also expect annual profit to grow more than 10% on a constant currency basis, compared to its earlier view of high-single digit growth.

On an adjusted basis, Mondelez earned 89 cents per share, compared with estimates of 80 cents, according to Refinitiv data.

Peer Hershey Co (NYSE:) had also said it expects annual revenue and profit at the upper end of its previous forecast, benefiting from higher prices and resilient demand.  

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 76,045.37 1.69%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,922.01 2.84%
tether
Tether (USDT) $ 1.00 0.02%
solana
Solana (SOL) $ 199.46 5.66%
bnb
BNB (BNB) $ 599.37 0.07%
usd-coin
USDC (USDC) $ 0.999598 0.02%
xrp
XRP (XRP) $ 0.55096 1.26%
dogecoin
Dogecoin (DOGE) $ 0.197847 2.28%
staked-ether
Lido Staked Ether (STETH) $ 2,920.85 2.84%
cardano
Cardano (ADA) $ 0.430345 15.97%
tron
TRON (TRX) $ 0.16068 0.84%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,459.13 2.58%
the-open-network
Toncoin (TON) $ 4.89 0.31%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.79%
avalanche-2
Avalanche (AVAX) $ 27.43 0.83%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,906.34 1.54%
weth
WETH (WETH) $ 2,923.35 2.68%
chainlink
Chainlink (LINK) $ 12.79 2.76%
bitcoin-cash
Bitcoin Cash (BCH) $ 378.35 0.49%
sui
Sui (SUI) $ 2.33 2.49%
polkadot
Polkadot (DOT) $ 4.20 1.40%
leo-token
LEO Token (LEO) $ 6.34 3.43%
usds
USDS (USDS) $ 0.999823 0.04%
litecoin
Litecoin (LTC) $ 71.44 0.79%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,071.25 2.61%
uniswap
Uniswap (UNI) $ 8.89 2.14%
near
NEAR Protocol (NEAR) $ 4.23 0.48%
aptos
Aptos (APT) $ 9.73 0.07%
pepe
Pepe (PEPE) $ 0.000011 5.26%
bittensor
Bittensor (TAO) $ 506.32 4.77%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.41 0.30%
internet-computer
Internet Computer (ICP) $ 7.73 3.03%
dai
Dai (DAI) $ 0.999764 0.02%
stellar
Stellar (XLM) $ 0.10151 3.35%
ethereum-classic
Ethereum Classic (ETC) $ 20.19 0.44%
monero
Monero (XMR) $ 163.38 0.43%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.14%
kaspa
Kaspa (KAS) $ 0.113522 5.90%
whitebit
WhiteBIT Coin (WBT) $ 19.65 2.07%
aave
Aave (AAVE) $ 180.27 2.40%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.343278 0.36%
crypto-com-chain
Cronos (CRO) $ 0.097916 13.79%
blockstack
Stacks (STX) $ 1.67 1.78%
okb
OKB (OKB) $ 40.20 1.00%
dogwifcoin
dogwifhat (WIF) $ 2.35 0.90%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.26%
arbitrum
Arbitrum (ARB) $ 0.577393 0.34%
mantle
Mantle (MNT) $ 0.662905 7.35%
filecoin
Filecoin (FIL) $ 3.72 1.16%