Oreo maker Mondelez beats second-quarter estimates on steady demand
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Oreo boxes are displayed on a shelf in a supermarket in Sarajevo, Bosnia and Herzegovina, October 29, 2024. REUTERS/Dado Ruvic
July 28 (Reuters) - Cadbury parent Mondelez International beat Wall Street estimates for second-quarter revenue and profit on Tuesday, helped by steady demand for biscuits and chocolates in key markets, as well as higher pricing.
Its shares rose nearly 2% in extended trading, after the company also raised its annual organic revenue growth forecast.
Pricing in North America, its biggest segment, increased 2.2 percentage points during the quarter, while volumes rose 1.2 percentage points.
"In North America, consumer confidence has partially rebounded from record lows, though energy prices continue to pressure household budgets," the company said in its prepared remarks. "Growth remains K-shaped, with consumers gravitating toward both value formats and premium options."
Mondelez expects annual organic net revenue to grow at least 2%, compared with flat to up 2% forecast earlier.
Organic revenue in Latin America increased 8.4% during the quarter, while Asia, Middle East & Africa grew 7.1%.
"Like other food companies, Mondelez is adjusting its portfolio to meet rising demand for smaller package sizes, and leaning on new product launches to increase shopper appeal," said eMarketer analyst Rachel Wolff.
The company had previously said it was broadening its zero-sugar and gluten-free Oreo ranges as customers pay closer attention to sugar consumption and nutritional choices.
Mondelez's adjusted profit came in 5 cents higher than the consensus estimate of 68 cents. Its adjusted gross profit margin increased 20 basis points, driven by higher net pricing and lower manufacturing costs, partially offset by higher raw material costs.
Quarterly net revenue stood at $9.36 billion, compared with analysts' average estimate of $9.20 billion, according to data compiled by LSEG.
The company maintained its annual adjusted profit forecast of flat to up 5%.
(Reporting by Koyena Das in Bengaluru; Editing by Shilpi Majumdar)
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