Mondelez International has lifted its annual sales outlook after a second‑quarter that beat expectations, driven by steady demand for its Oreo and Cadbury brands and a series of price adjustments.
Quarterly performance exceeds forecasts
Net revenue climbed 4.1 percent to £7.03 billion, ahead of analysts’ estimate of £6.91 billion. Organic sales rose 2.2 percent, with pricing contributing 1.5 percent and a mix of volume and product‑line changes adding 0.7 percent.
Adjusted gross profit increased 4.9 percent to £2.39 billion, nudging the gross margin to 34 percent. Adjusted operating profit slipped 4.8 percent to £916 million as the firm stepped up investments in its brands. Earnings per share reached £0.55, five pence above consensus forecasts.
Shares of the snack‑food giant, which also owns Ritz, Toblerone, Milka and Clif Bar, rose nearly two percent in after‑hours trading.
Regional trends show mixed results
In North America, organic revenue grew 3.4 percent despite earlier price hikes, with pricing and product mix adding 2.2 percent and volumes contributing 1.2 percent. Mondelez noted that consumer confidence had risen from recent lows, though higher energy costs continued to strain household budgets.
Latin America delivered the strongest growth, with organic sales up 8.4 percent, largely reflecting higher prices. Revenue across Asia, the Middle East and Africa increased 7.1 percent, helped by stronger volumes and a favorable product mix.
Europe, by contrast, saw organic sales fall 3.5 percent as both pricing and volumes declined. Chief executive Dirk Van de Put said the firm was beginning to see an improvement in its European market‑share performance, hinting that the decline may be temporary.
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The business is adapting to shifting shopping habits by expanding smaller packs, value formats and premium lines. It has also extended its zero‑sugar and gluten‑free Oreo ranges, aiming to capture health‑conscious consumers.
From a broader perspective, the pattern mirrors previous cycles where price‑led growth in emerging markets offset softness in mature regions, suggesting Mondelez’s strategy of balancing price actions with product innovation remains a core driver of its resilience.
Mondelez now forecasts organic revenue growth of at least two percent in 2026, up from its prior range of flat to two percent. The earnings guidance stays unchanged, with adjusted profit per share expected to grow between flat and five percent.
It will keep investing in product innovation and broader distribution while dealing with volatile commodity and geopolitical costs.
Operating cash flow generated in the first half totaled £976 million, and the group returned £1.13 billion to shareholders through dividends and share buybacks.
Investors responded positively.
