Mondelēz brands boost organic sales in third quarter
Mondelēz brands Oreo, Ritz and Cadbury Dairy Milk have contributed to the multinational's organic sales increase of 1.1% in the third quarter.
The group said growth had been driven by continued improvements in overall volume trends, and price rises to recover currency-driven input costs in inflationary markets.
Net earnings for the period were down 93% to £452m compared with a year ago when Mondelēz was boosted by a £5.6bn gain from the spin-off of its coffee business into a joint venture with Dutch group DE Master Blenders 1753 to create Jacobs Douwe Egberts.
The latest results follow Mondelēz's agreement to buy the global licence to produce Cadbury branded biscuits from Burton’s Biscuit Company, and after a £19bn takeover bid was rejected by Hershey.
Mondelēz chief executive Irene Rosenfeld said: “Our third-quarter results underscore our continued commitment to improve operational efficiency, expand margins and profitably grow volume while also investing in strategic growth initiatives for the longer term.
“In the face of challenging market conditions, we’re building a stronger, more streamlined company that is well positioned to deliver sustainable, profitable growth and attractive cash generation.”
Adjusted per-share earnings beat analysts' expectations in the US for the quarter, climbing from 38 cents a share to 52 cents.
The group is in the middle of a £2.4bn ($3bn) cost-cutting programme to improve margins and boost the bottom line.
Its selling, general and administrative expenses fell 13.3% in the quarter to £1.3bn ($1.6bn) for the three months to 30 September.
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