Cadbury chocolate maker Mondelez International said it was on track to complete its transformation agenda after reporting strong second quarter 2015 results, while the completed coffee joint venture has increased the company’s focus on snack foods.
Organic net revenue growth of 4.3% was “solid” as the as the company raised prices to recover currency-driven input cost inflation, against net revenues that fell 9.2% to $US7.7 billion.
While net profit fell 34.7% to $406 million, Mondelez updated its 2015, full year organic net revenue growth outlook.
Power Brands (such as Oreo, Ritz and belVita biscuits; Milka, Cadbury Dairy Milk and Lacta chocolate; Trident gum; Tang beverages; and Jacobs, Tassimo and Carte Noire coffee) grew 6.6%, organic net revenue from emerging markets was up 9.7% and developed markets 0.9%.
“Our strong second quarter results reflect continued execution of our transformation agenda,” said Irene Rosenfeld, chairman and CEO.
“We’re continuing to make excellent progress driving supply chain productivity and overhead cost reductions to deliver top-tier margin expansion and earnings growth. This provides additional fuel to step up investments in marketing, sales and capacity expansion to accelerate revenue growth and improve market share, both now and over the long term.”
Ms Rosenfeld said that the launch of Oreo Thins got off to a great start. With the completion of the coffee JV, snacks are now about 85% of Mondelez’s revenue, made up of biscuits and chocolate with 70%, and gum and candy at about 15%.
With coffee, powdered beverages make up about 6% of revenue, while cheese and grocery account for about 10%.
The company combined its global coffee business with D.E Master Blenders 1753 B.V. on July 2, 2015, to create Jacobs Douwe Egberts.