US confectionery company Mondelēz International has posted a drop of 12.5% in full-year net revenues in 2016, in a year that saw a strong dollar decrease the value of sales outside the US.
Net revenues for the total year were $25.9 billion, compared to $29.6 billion in 2015. However, organic net revenue increased by 1.3%.
Net sales for the fourth quarter decreased 8.1% to $6.77 billion, driven by 'currency headwinds' and the company's Venezuelan deconsolidation, which saw full-year profits drop 31.3% in Latin America. The Oreo-maker offloaded its Venezuelan operations in 2016, due to intense inflation and supply shortages.
The company saw revenues drop in all of its markets in 2016, with the US the least affected, seeing a drop of only 0.2%. In Europe, the full-year loss in net revenue was 16.4%.
Analysts were expecting at least $6.89 billion in net revenue, according to Reuters.
However, Mondelēz said that it expects organic net revenue to increase at least 1% this year. It said that it 'remains committed' to the 2018 adjusted-operating-income-margin target of 17-18%.
"We continue to make solid progress toward our near-term margin targets, while investing for long-term growth," said Irene Rosenfeld, chairman and CEO.
"Despite significant economic disruptions, political uncertainties and slower global category growth, we remain confident in, and committed to, our balanced strategy for both top- and bottom-line growth."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up for ESM: The European Supermarket Magazine.
