DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

Mondelēz Raises Dividend As North America Cushions Emerging Markets Blow

By Dayeeta Das
Share this article
Mondelēz Raises Dividend As North America Cushions Emerging Markets Blow

Mondelēz International Inc raised its quarterly dividend by 11%, after strong demand for its snacks and chocolates in North America offset sales declines in all of the Oreo maker's other businesses.

With US and Canadian consumers reluctant or unable to visit restaurants due to COVID-19, sales have surged across the North American packaged food industry.

However, several of Mondelēz's most crucial growth markets - including Brazil, India and Southeast Asia - were hit hard by the pandemic during the second quarter as severe lockdowns closed traditional stores.

About two-thirds of Mondelēz's revenue comes from markets outside of North America.

Outlook

Mondelēz, which in April withdrew its full-year outlook, said it still would not provide a forecast due to uncertainty caused by the novel coronavirus.

ADVERTISEMENT

The company did say, however, that it expects currency fluctuations to hurt full-year revenue growth by about 3%, and adjusted EPS by 5 cents.

The company, which also makes Cadbury chocolate and Chips Ahoy cookies, increased its quarterly cash dividend to $0.315 per share of Class A common stock.

Quarterly Performance

Deerfield, Illinois-based Mondelēz's net revenues rose 17.3% in North America to $2.03 billion (€1.75 billion).

Overall revenue fell to $5.91 billion (€5.10 billion) from $6.06 billion (€5.16 billion), but came in just above market estimates of $5.90 billion (5.02 billion), according to IBES data from Refinitiv.

ADVERTISEMENT

Excluding certain items, Mondelēz earned 63 cents per share in the quarter ended June 30, above analysts' estimate of 56 cents. Shares of the company were flat in extended trading.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.