Snacking company Mondelēz International has reported a 5.5% increase in net revenue in the first financial quarter of 2018, equalling $6.77 billion and beating analysts' estimates.
The company, which sells power brands Oreo, Cadbury Dairy Milk and Milka, also saw its organic net revenue grow by 2.4%. Its adjusted operating income rose by 20 basis points, to 16.7%, while its adjusted earnings per share saw a boost of 9.6% on a constant-currency basis, to $0.62.
"We had a good start to the year, with improving top-line momentum and continued progress in margin expansion, driven by strength in Europe and AMEA," commented Dirk Van de Put, chairman and CEO.
"We continue to see encouraging snacking category growth trends, especially in emerging markets. We remain focused on executing our 2018 plan while making good progress developing our long-term strategic framework," Van de Put added.
North American Drop
Its North American market was the only segment that didn't experience growth this quarter, the company said, with a decrease in net revenue of 1.3% on 2017, to $1.62 billion. Its European division saw a 14.4% jump on Q1 2017, with net revenues of $2.70 billion.
Mondelēz is predicting an organic net revenue growth of 1%-2% on a constant-currency basis for full-year 2018.
In 2017, the company recorded revenues of $25.89 billion, representing a drop of 0.1%, compared to the previous year, with sales in North America falling by 2.3%.
In April, it announced the opening of what it described as the 'factory of the future', in the Middle Eastern country of Bahrain.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.
