Mondelēz International Inc raised its revenue forecast for the full year after posting better-than-expected quarterly results on Tuesday, as higher product prices failed to quell demand for the Oreo maker's snacks and chocolates.
Packaged food makers have steadily raised prices on everything from cookies to beef jerky as they try to protect their margins from increased costs tied to labor, ingredients and transportation without drawing consumers' ire.
The Cadbury chocolate maker forecast 2022 organic net revenue to rise by more than 8%, compared with its prior estimate of over 4%.
"While consumers (in developed markets) express growing frustration with rising prices for a broad range of goods and services, they continue to perceive chocolate and biscuits as affordable indulgences and an important pick-me-up," chief executive Dirk Van de Put said on a post-earnings call.
For the second quarter, Mondelēz's net revenue rose about 10% to $7.27 billion, beating estimates of $6.78 billion, according to IBES data from Refinitiv.
"Volume growth of 5% in the second quarter is impressive," Credit Suisse analyst Robert Moskow wrote in a note.
Consumer giants Coca Cola Co, McDonald's Corp and Unilever said earlier on Tuesday that their products were selling well, despite price hikes.
Mondelez's finance chief, Luca Zaramella, said consumers could start pushing back against price increases, particularly in Europe – where the inflation pinch is more pronounced than in the United States – though it has seen little impact so far.
The price increases helped soften the blow from the impact of a strong US dollar on its earnings in the quarter.
Adjusted profit was 67 cents per share, and came in 3 cents above estimates.
However, the company, which increased its quarterly dividend by 10%, maintained its 2022 earnings forecast due to higher costs for transportation, packaging and food ingredients.