Mondelēz International has reported a smaller than expected 2.5% drop in net revenue for Q2, with strong demand from North America offsetting declines elsewhere.
Overall revenue fell to $5.91 billion from $6.06 billion, but came in just above market estimates of $5.90 billion, according to IBES data from Refinitiv, cited by Reuters.
In its second quarter, the owner of Cadbury and Oreo witnessed 17.3% growth in net revenue in North America.
Following a small 1.3% increase in Q1, Europe recorded a 4.9% year-over-year drop in net revenue for Q2. However, the region generated the largest amount of revenue for Mondelēz overall, with over $2.1 billion worth of sales.
Across the company’s emerging markets, net revenue was down 15.6%. Latin America witnessed a decrease in sales of 9.3% in the first quarter, and this trend was far more pronounced in Q2 when net revenue dropped 30.7% year-over-year.
Mondelēz was boosted by the performance of its Asia, Middle East and Africa unit in its 2019 full-year results. However, in Q2 2020 net revenue for these markets fell by 8.5%.
“I am pleased with our second quarter performance given the challenging environment, with top-line performance driven by developed markets and strong share gains in all key markets,” said Dirk Van de Put, Mondelēz chairman and CEO.
“Our emerging markets performance improved throughout the quarter as store closures eased and consumers in many markets were increasingly able to access our products.
“While we expect continued volatility and uncertainty from Covid-19, I am confident that our strategy, investments, category fundamentals and execution will enable us to successfully navigate this crisis and emerge stronger.”
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