Snacking giant Mondelēz has reported an increase in net revenues of more than 9.5% for its second-quarter, driven by organic net revenue growth of at least 13.1%. The company’s chocolate and biscuit businesses continue to demonstrate strong volume growth and pricing resilience across both developed and emerging markets.
Year-to-date cash provided by operating activities was US$2 billion, an increase of US$200 million compared with 2021. Free cash flow is calculated as US$1.6 billion. The company’s net revenue growth outlook has been raised by more than 8% for a year.
“Our second quarter and first half results were marked by strong top and bottom-line performance across all regions and categories, supporting the raising of our full-year revenue growth outlook,” says Dirk van de Put, chairman and CEO, Mondelēz.
The numbers love confectionery
Mondelēz’s chocolate and biscuit businesses continue demonstrating strong volume growth and pricing resilience across developed and emerging markets.
“These results combined with ongoing cost discipline, simplification and revenue growth management are delivering robust profit dollar growth and strong cash flow, enabling us to increase our dividend by 10%,” explains Van de Put.
The acceleration fits into the company’s strategy of reshaping its portfolio and the recent agreement to acquire Clif Bar, a well-being snack bars provider, has strengthened its snack bar business to more than US$1 billion.
Clif Bar is a strong player in the US protein and nutrition market and provides Mondelēz with opportunities to expand domestic and international distribution and velocities.
Mondelēz’s chocolate and biscuit businesses have demonstrated strong volume growth.
“We also continue to execute against our strategy of accelerating our core business while reshaping our portfolio, most recently with our agreement to acquire Clif Bar, a leader in high growth, well-being snack bars, creating a US$1 billion-plus snack bar business,” continues Van de Put.
“Clif Bar has the leading position in the US protein and nutrition segments with clear opportunities to expand domestic and international distribution, velocities and profitability to create significant value for our shareholders in the years to come.”
Return on investments
The return of capital to shareholders was US$2.5 billion in the first half of 2022. Mondelēz International recently made minority investments in Uplift Food, Torr and HU.
Meanwhile, the company’s innovation and venture hub, SnackFutures, launched CoLab, a start-up engagement program for early-stage snack brands with a well-being positioning. The program has been designed to drive mutual growth between entrepreneurs and the Mondelēz International ecosystem.
The company has also created and launched five well-being brands in the US and Europe, including CaPao, Dirt Kitchen Snacks, Millie Gram, NoCoé and Ruckus and Co.
Outlook
The company is updating its fiscal 2022 outlook to reflect expectations for continued top-line growth, higher cost of goods sold inflation, the timing effect of additional pricing actions and the impact of the war in Ukraine.
For 2022, the company now expects 8% Organic Net Revenue growth, which reflects the strength of its first half and higher pricing related to increased input costs. The company's expectation of mid-to-high single digit Adjusted EPS growth on a constant currency basis remains unchanged.
Mondelēz says the outlook is provided in the context of greater than usual volatility as a result of COVID-19 and geopolitical uncertainty.
