Confectionery giant Mondelēz International Inc raised its full-year results forecasts and rolled out more price hikes as people continued to snack on the Oreo maker's chocolates and biscuits even amid rising prices.
"We see consumers saying that chocolate is really something they cannot live without," chief executive Dirk Van de Put said on a post-earnings call.
Mondelēz joins a host of food companies including Cheerios maker General Mills Inc and soda giants Coca-Cola Co and PepsiCo Inc in boosting its annual forecasts on the back of higher prices, as shoppers remained willing to indulge on "affordable luxuries" despite decades-high inflation.
Volatile Environment In Europe
Still, Mondelēz is battling a volatile environment in its European market, which recorded a 2.4% fall in quarterly revenues, as consumers tighten their belts amid soaring rent and energy costs.
The confectionery maker said some high-margin product lines in France and across Europe were impacted by disruptions around pricing from retailers.
But strong demand in emerging markets and North America helped Mondelēz post an adjusted profit of 74 cents per share on revenue of $7.76 billion (€7.96 billion) for the third quarter, both exceeding Refinitiv IBES estimates.
"Third quarter's a charm," J.P. Morgan analyst Ken Goldman wrote in a note, adding that the results are a win for the stock.
Mondelēz now expects 2022 organic net revenue to increase more than 10%, up from a prior estimate for an over 8% jump.
It also forecast 2022 adjusted profit per share would grow more than 10% on a constant-currency basis, compared with its previous expectation for mid-to-high single-digit growth.