Mondelēz upgrades FY forecast after strong Q2 | Progresiv
Mondelēz International has sounded a more optimistic note for its full-year performance after reporting improved results for its second quarter. 
For the three months to 30 June, revenues grew by 2.1% to 6.1 billion dollars, and were up 3.5% on an organic basis, even as volumes rose by 2.1% on the latter basis. Meanwhile, adjusted operating profit was up 12.4% to 1.02 billion dollars, while adjusted net profit grew by 12.2% to 826 million dollars.
The results were boosted by underlying growth in all regions – organic revenues grew by 5.7% in North America, by 3.8% in Latin America, by 2.8% in Europe, and by 1.7% in Asia, Middle East & Africa. Its ‘Power Brands’ also recorded a 4.7% rise in organic revenues (+5.2% reported basis).
CEO Dirk Van de Put said the “strong” results built on “the momentum created in the beginning of the year”. He added that Mondelēz now expects full-year sales to grow by about 2% on an organic basis, compared to a previous forecast of 1%-2% growth, and still expects adjusted operating profit margin to grow by around 17%.
Van de Put also noted that the US market remains strong, despite rising costs, pointing to the growing demand for snack products. He also said Mondelēz does not currently plan to raise prices due to the ongoing tariff war, but admitted that it is prepared for a slowdown in consumer spending.
Mondelēz will also disclose the details of its ongoing strategic review in September, with Van de Put noting: “There won’t be a major change of direction for the company, but our five-year plan needs to show more top-line growth”. (www.kamcity.com)
