Mondelēz International Inc beat Wall Street estimates for fourth-quarter revenue and earnings, boosted by higher demand for its snacks and Oreos in developed markets.
Consumers stuck at home under new lockdown restrictions in Europe and North America stocked up on chocolates and snacks during the holiday season, driving sales across the candy industry which has grown since start of the COVID-19 pandemic.
To build on this demand, Mondelēz has invested in digital marketing, collaborated with singer Lady Gaga to launch limited edition Oreos, and adapted to stay-at-home shopper preferences by adding larger family-sized packs to its e-commerce portfolio.
The Cadbury chocolate-maker's quarterly revenue rose nearly 6% in Europe and about 14% in North America, Mondelēz's two largest markets.
"Mondelēz remains our favorite large-cap long in the U.S, packaged food space - the company has shown resilience in the face of the global pandemic," Bernstein analyst Alexia Howard recently wrote in a note.
Revenue rose to $7.30 billion from $6.91 billion a year ago, beating analysts' average estimate of $7.16 billion, according to IBES data from Refinitiv.
Excluding items, the company earned 67 cents per share, beating analyst expectations of 66 cents per share.