Mondelez sets out new targets | Progresiv
Mondelez International has outlined new financial forecasts even as it detailed changes to its overall strategy. 
The group reiterated its forecast for 2018, saying it expects revenue to grow by 1%-2% on an organic basis. However, it expects revenue in fiscal 2019 to grow by 2%-3%, on adjusted earnings per share growth of 3%-5%, also on an organic basis.
For the long term, Mondelez expects organic revenue to rise by more than 3%, with adjusted EPS growing by a high single digit (on a constant-currency basis). CFO Luca Zaramella noted: “We are confident that our new strategic plan will create sustained long-term shareholder value, by accelerating our top-line growth, continuing to focus on productivity gains and improving our cash flow generation.”
The group offered more details of its long-term strategy, which it said will see it “transition to a more growth-oriented company.” The key factors of the new strategy include – a greater focus on the snacking category, brand extension into new markets, increased investment in e-commerce, expanding faster in higher-growth geographies, creating a “more agile organisation”, and “transformation of marketing and digital capabilities”.
CEO Dirk Van de Put noted: “With strong leadership in our categories, an unparalleled portfolio of global and local brands and a solid footprint in fast-growing markets, we are uniquely positioned to lead the future of snacking. We have developed a clear strategic plan to accelerate our growth and drive attractive total returns centered around three strategic priorities: accelerate consumer-centric growth, drive operational excellence and build a winning growth culture.”
Mondelez also introduced a new tagline – ‘Snacking Made Right’ – which it said will see it aim to offer “a broad range of delicious, high-quality snacks to satisfy every consumer occasion, with more sustainably sourced ingredients that consumers feel good about.” (www.kamcity.com)
