Mondelēz International Expects 3% Growth for 2019 

After a strong first-half performance, Mondelēz International now expects organic net revenue growth of +3% for 2019. 

For the second quarter of the year, net revenues declined 0.8%, driven by the impact of currency. Organic net revenue increased by 4.6%, through a combination of volume/mix and pricing across both emerging and developed markets. There was a positive impact from lapping the Brazil trucking strike in the prior year. 

Gross profit declined USD71m and margin decreased 90 basis points to 40.7% due to the unfavorable year-over-year change in currency and commodity hedging activities. Adjusted gross profit increased USD106m at constant currency and margin was flat at 40.6%. 

Operating income increased by USD544m and margin was 16.9%, up 900 basis points, due to lapping the prior-year impact from pension participation changes and lower Simplify to Grow Program costs. Adjusted Operating Income increased by USD41m at constant currency and margin was flat at 16.7%.

The company continued to make progress this quarter, through: 

• Expansion of channels and key markets: investing in fast-growing sales channels, including e-commerce, and winning in high-potential emerging markets

• Investment in global and local brands: continuing momentum on two of the company’s largest brands, Oreo and Cadbury Dairy Milk, as well as reigniting local jewels like Nutter Butter in the U.S., which celebrated its 50-year anniversary with double-digit growth in the quarter.

• Partnerships and M&A: entering nutrition bars with Perfect Snacks acquisition.

• Marketing and sales excellence: leveraging the company’s leadership in the chocolate category by driving growth and gaining share in key markets with best-in-class Easter execution.

• Continuous cost improvement: maintaining cost discipline throughout the organization with ongoing initiatives like waste reduction in the U.S. network and embedded ZBB processes.

• Local first culture: delivering efficiencies including a 40% reduction in business planning meetings in Europe as a result of the company’s new structure and culture.

• Getting innovation to market faster like new Cadbury Go Nuttier in the U.K., leveraging Agile methodology and a pilot launch.

• Sustainable snacking: advancing in the company’s sustainability journey this quarter with the publication of the company’s Impact 2025 commitments, including its goals to source 100% of cocoa for its chocolate through Cocoa Life and achieve 100% packaging recyclability. In addition, the company reached an agreement with Enel Green Power to source solar power in support of its goal to cut CO2 emissions in manufacturing by 15% by 2020.