Cost Efficiency Among Core 2018 Priorities for Mondelēz International

At the Consumer Analyst Group of New York (CAGNY) conference, executives of Mondelēz International highlighted the company’s priorities for the year, mentioning cost efficiencies as a fundamental part of our playbook.

Chief executive officer Dirk Van de Put outlined several areas of focus that will be important as the company develops its future strategic framework: putting consumers first, leveraging power brands, solidifying an omni-channel presence and executing with excellence.

“We’re taking a fresh approach, challenging existing thinking and exploring new ideas and ways to win,” he said. “More than ever, the consumer needs to be at the center of what we do. Today’s consumers eat differently, shop differently and seek different experiences. Since consumers are changing fast, we have to be nimbler, more innovative and forward-looking than ever before.”

Van de Put continued: “The key to unlocking more value for shareholders is to get two things right: putting the consumer at the center of everything we do, and executing with excellence every day, in every store. If we do that, I’m confident we’ll deliver sustainable, profitable growth.”

Brian Gladden, chief financial officer, underscored the company’s strong bottom-line performance over the past four years, including a 600-basis-point increase in Adjusted Operating Income margin, and 18% CAGR in Adjusted EPS at constant currency. Gladden highlighted how the company’s supply chain reinvention program and zero-based budgeting approach significantly contributed to delivering this performance.

“We’ve built a core competency in cost management, and this will benefit us moving forward,” Gladden said. “Cost efficiencies will continue to be a fundamental part of our playbook, and we’re confident there are additional opportunities to improve margin performance and fund growth initiatives.”

During presentation, the company reaffirmed its 2018 outlook, including an organic net revenue growth of 1 to 2%, adjusted operating income margin of approximately 17%, double-digit adjusted EPS growth on a constant-currency basis and free cash flow of approximately USD2.8bn.