CADBURY-PARENT Mondelez International beat Wall Street estimates for second-quarter revenue and profit on Tuesday, supported by steady consumer demand for its higher-priced chocolates and biscuits, particularly in international markets including Europe.
To offset rising input costs such as cocoa, the Milka and Toblerone chocolate maker has raised prices over successive quarters, boosting profits. Resilient demand despite the hikes supported revenue growth in key segments such as Europe.
Volumes in Europe, a major revenue contributor, were down 1.3 percentage points, compared to a 3.1 percentage points dip a year ago, while revenue in the segment surged 18.7 per cent, driven by a 13.8 percentage points rise in pricing.
North America volumes declined 2.4 percentage points, widening from a 1.2 percentage points decline in the same quarter last year.
Macroeconomic uncertainty from US trade tariffs under President Donald Trump has pressured consumer spending in the United States, pushing budget-conscious shoppers toward cheaper private-label alternatives.
Mondelez, which flagged the trend last quarter, said it plans to counter it through value-focused price packs in its American market.
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“US consumers are showing more resistance to higher prices compared to consumers in Europe. Looking ahead, having the right pack sizes at the right price points, channels, and locations will be even more critical,” said Arun Sundaram, an analyst with CFRA Research.
The company reported net revenue of US$8.98 billion for the quarter ended June 30, topping analysts’ average estimate of US$8.84 billion, according to data compiled by LSEG.
On an adjusted basis, Mondelez earned 73 cents per share for the quarter, compared with analysts’ average estimate of 68 cents per share.
Shares of the Chicago-based snack maker fell about 3 per cent in after-hours trading after it maintained its annual forecast despite the quarterly results beat.
The company reaffirmed its outlook for 2025 organic net revenue growth of about 5 per cent, but continues to expect adjusted profit to decline 10 per cent. REUTERS
