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Mondelez Reiterates Guidance as Earnings Beat Estimates
Oreo, Cadbury, Ritz Owner Finds Sweet Spot as Raising Its Prices Has Helped Offset Elevated Cocoa Costs
Mondelez's Q2 sales totaled $8.98 billion, better than the $8.84 billion that analysts had expected. (Steven Senne/Associated Press)
Mondelez International posted quarterly results that topped estimates but reiterated its annual outlook.
The company reported better-than-expected sales for the second quarter, citing strong pricing execution in its chocolate business.
The owner of the Oreo, Ritz and Cadbury brands reported adjusted earnings per share of 73 cents, topping analysts’ expectations for 68 cents. Sales totaled $8.98 billion, better than the $8.84 billion that analysts had expected.
Mondelez ranks No. 65 on the Transport Topics Top 100 list of the largest private carriers in North America and No. 9 among agriculture and food processing carriers.
CEO Dirk Van de Put said the company remained confident in its ability to deliver “amid a challenging environment” and cited “robust growth across the vast majority of our geographies.”
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Shares of Mondelez fell 3.3% July 29 at 4:21 p.m. in after-market trading in New York. The stock has risen 17% this year so far, compared with an 8.3% gain for the S&P 500.
Mondelez has been contending with cost-conscious consumers, shoppers who are cutting back on snacks, a reshaping of the American diet by new weight-loss drugs and historically high cocoa prices.
RELATED: Hershey’s Main Owner Rejects Mondelez’s Offer as Too Low
The company said earlier this year it was raising prices to offset elevated cocoa costs. Other chocolatiers have followed suit. Hershey Co. said last week that it was raising its prices by double digits due to cocoa costs.