Mondelēz reports improved FY results | Progresiv
Mondelēz International has reported an improved set of results for its 2017 fiscal year, which it termed as “solid”. 
For the year, revenues rose by 0.9% to 25.9 billion dollars on an organic basis (-0.1% reported), even though volumes declined by 0.6%. Adjusted operating profit was up 9.9% to 4.18 billion dollars, with margins jumping up 130bps to 16.3%, while adjusted net profit grew by 11.9% to 3.27 billion dollars.
The growth was led by a 3.5% rise in organic revenues in Latin America, a 2.7% increase in AMEA, and a 1.3% rise in Europe, which helped offset a 2.4% decline in North America. Volumes were down across all regions except Europe, which recorded a 1.4% increase.
Sales of its so-called ‘Power Brands’ grew by 2.1% on an organic basis to 18.4 billion dollars, while sales of other brands declined by 2.4% to 6.9 billion dollars.
CFO Brian Gladden noted: “We delivered a strong year of margin expansion and earnings growth, marking significant progress from four years ago. Our improved top-line performance was fueled by our Power Brands and favourable trends in emerging markets.”
CEO Dirk Van de Put said Mondelēz was entering 2018 “with improving momentum in our business”. The group has forecast net revenue to grow by 1%-2% on an organic basis, while adjusted operating margin is expected to grow to 17%. (www.kamcity.com)
