Mondelēz remains number one biscuit producer in the world

Mondelēz has reported net revenues were USD 8.3 billion, 1.6 per cent down for the third quarter of 2014. 

In spite of not such well results the company is still a world leader in biscuits (as well as chocolate, gum, candy, coffee and powdered beverages) and they reported in year-to-date to September growth of 3,9 in their global snack category.

Biscuits play significant role in Mondelēz portfolio. Their billion-dollar biscuit brands that include LU, Nabisco and Oreo biscuits, together with other leading brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, made about 33 per cent of company’s net revenue in 2013.

As they hold the number 1 position globally in biscuits, they are number 2 in gum and coffee.

Mondelēz reported, in an online press conference, about three-quarters of their annual revenue is generated in the fast-growing Biscuits, Chocolate and Gum & Candy categories, and nearly 40 per cent of their sales come from high-growth emerging markets. That is the reason company is stepping up their investments in that markets to deliver profitable growth over the long-term. Emerging markets consist of the Latin America and Eastern Europe, Middle East and Africa regions in their entirety; the Asia Pacific region, excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Poland, Czech & SlovakRepublics, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

Irene Rosenfeld, Chairman and CEO, explained: “With global retail and consumer demand expected to remain soft in the near term, we’re sharply focused on the execution of our productivity and cost-reduction programs to drive earnings growth. At the same time, we’re continuing to make the foundational investments in our brands, route-to-market capabilities and supply chain to capture growth in our categories as they accelerate, especially in emerging markets”.

“By successfully reducing costs in the near term while investing for the long term, we’ve driven Adjusted Operating Income margin expansion of at least 100 basis points and double-digit Adjusted EPS growth on a constant-currency basis for three consecutive quarters, while delivering solid organic revenue growth. As a result, we’re raising our full-year guidance for both Adjusted Operating Income margin and EPS and maintaining our organic revenue outlook for 2014.”

You can read more on Mondelēz results on next issue of Biscuit World.