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Mondolez Posts Profits But Lowers Guidance

Published on Nov 7 2013 11:08 AM in A-Brands

Mondolez Posts Profits But Lowers Guidance

Mondelez lowered its guidance for 2013 organic net revenue growth as it reported lower-than-expected third-quarter revenues in a further sign of the challenges facing the food industry.

The maker of Oreo cookies and Cadbury chocolate said it expected organic net revenue, to grow around 4% for the year, against its earlier forecast of about 5%.

Mondelez, the snack business spun off from Kraft Foods, said revenues for the quarter improved 1.8% to $8.47 billion from $8.33 billion last year. Fourteen Wall Street analysts polled by Thomson Reuters expected revenues of $8.56 billion for the quarter.

Revenue growth mainly reflects performance from emerging markets, led by gains of mid-to-high teens in Russia, India and Brazil. Meanwhile, sales from China dropped double-digits due soft macro economic conditions. Developed markets grew 1.8% as North America, Europe and Asia Pacific all posted low-single digit gains.

Irene Rosenfeld, chief executive, said in a statement that weak biscuit sales in China, low coffee prices and slower global growth, particularly in emerging markets, had hit third-quarter revenue.

“We expect these factors will continue to pressure our top line for the remainder of the year,” Ms Rosenfeld said.

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Kraft Foods also faces difficulties. Tony Vernon, chief executive, last week told analysts that shoppers “have little interest or minimal ability to buy more than what they need for a given week or even a given day”.

© 2013 - European Supermarket Magazine by Enda Dowling

 

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