Mondelēz posts stronger than expected results amid Covid-19

Mondelēz International has reported 2.6% growth in net revenue to $6.7 billion during its first quarter, driven by strong demand from North America.

Despite having beaten analysts’ estimates for its quarterly results, Mondelēz has withdrawn its full-year financial guidance for 2020, owing to limited visibility caused by the coronavirus pandemic.

In its first quarter, the owner of Cadbury and Oreo witnessed a significant increase in demand for the company’s snacks in developed markets which helped to offset weakness in emerging markets. 

In North America, net sales grew by over 15%. Growth in Europe was less pronounced – up 1.3% year-over-year – but the region generated the largest amount of revenue overall, recording nearly $2.6 billion worth of sales.

In emerging markets, net revenue was down 3.4%, with a notable decrease in sales of 9.3% in Latin America.

This compares with the picture for 2019 when Mondelēz was boosted by the performance of its Asia, Middle East and Africa unit, with India and China seeing particularly strong revenue growth.

“We had a strong first quarter, with record market share gains, and executed very well in challenging circumstances, thanks to the dedication and commitment of our colleagues, especially those on the front line, who are working tirelessly to provide food to consumers around the world,” said Dirk Van de Put, Mondelēz chairman and CEO. 

 Van de Put added: “In the last month of the quarter, we saw a significant increase in consumer demand for our snacks in developed markets, particularly in North America, which more than offset a more challenging environment in several emerging markets.     

“Our priority at this time is to protect our colleagues and maintain business continuity in service of our customers and consumers around the world. 

“We remain confident that with our dedicated people, our portfolio of trusted global and taste-of-the-nation local brands, our strong balance sheet, access to significant liquidity and our clear strategic priorities, we have everything we need to manage through this pandemic and emerge stronger on the other side.”