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**Mondelez International Inc. Sees Strong Growth and Improved Profitability**

In a recent call with investment analysts, Dirk Van de Put, chairman and CEO of Mondelez International Inc., revealed that the company is experiencing robust growth in dollar and unit sales, along with enhanced profitability. This is seen as a validation of the focused strategy pursued by Mondelez in recent years. The third quarter financial results showcased a 16% increase in both sales and adjusted earnings per share compared to the previous year.

Mr. Van de Put emphasized the company’s commitment to reshaping its portfolio by focusing on core categories such as chocolate, biscuits, and baked snacks. Mondelez’s successful divestiture of its developed market gum business has created additional reinvestment opportunities. Despite ongoing inflation, consumers continue to choose Mondelez’s trusted and beloved brands, which reflects their confidence in the company’s long-term strategy.

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**Mondelez’s Impressive Financial Performance**

Mondelez International reported a significant jump in net income for the third quarter, reaching $984 million, or 72¢ per share, compared to $532 million, or 39¢ per share, in the same period last year. Net sales also witnessed a remarkable increase, reaching $9.03 billion, up 16% from $7.76 billion year-over-year. The surge in net income was attributed to various factors, including a gain on marketable securities, lapping prior-year inventory step-up charges, and mark-to-market effects.

Gross profit margins at Mondelez experienced a notable rise, reaching 38.7% from 33.7%, a 5% increase. While net sales increased by $1.3 billion, cost of sales only rose by $385 million. This improvement was mainly driven by pricing, lower manufacturing costs, and a favorable product mix. Additionally, the company achieved lower manufacturing costs through productivity gains, although raw material and transportation costs were higher.

**The Refined Financial Guidance and Outlook**

Mondelez updated its financial guidance for the rest of the year, forecasting organic sales growth of 14% to 15%, which surpasses its previous outlook of 12% plus. The company also revised its adjusted earnings per share growth forecast, raising it from 12% plus to 16%. However, Mondelez’s chief financial officer, Luca Zaramella, highlighted the continuing rise in ingredient costs, particularly for cocoa, sugar, and other commodities.

**Mondelez’s North America Business Performance**

The operating income of Mondelez’s North America business reached $611 million for the third quarter, reflecting a 31% increase compared to the previous year. Sales in North America also experienced growth, reaching $2.85 billion, a 14% increase. The organic sales growth in the region stood at 11.4%, highlighting the market’s positive response to Mondelez’s products.

In terms of the sales increase in North America, both volume and mix played a significant role, contributing 4.6 percentage points of growth, while pricing accounted for 6.8 points. Although scanner data indicated weakness in the biscuit category, Mr. Van de Put clarified that this decline was due to lower-income families migrating to non-measured club stores. He reiterated that the company’s brands were continuing to grow, particularly in unmeasured channels like club stores, e-commerce, and food service. Oreo, Mondelez’s flagship brand, remains a market force in North America.

**Expanding Business Opportunities**

Mr. Van de Put expressed his optimism about the potential of Mondelez’s recently established snack bar business, which is expected to generate $1.2 billion in revenue in 2023. The strong and growing brands of Clif Bar, Grenade, and Perfect Snacks are fueling this growth. Clif Bar, in particular, has exhibited impressive sales growth, with the Clif Kid Zbar leading the way with a 19% increase in consumption dollar growth compared to the previous year. Grenade, operating in the sports nutrition space, has exceeded management expectations and doubled in size since its acquisition. Additionally, Perfect Snacks has solidified its position as the top-selling refrigerated protein bar in the United States.

**Mondelez’s Year-to-Date Performance**

For the year-to-date period, Mondelez’s net income increased by 88%, reaching $4.01 billion, or $2.94 per share, compared to $2.13 billion, or $1.55 per share in the previous year. Net sales also witnessed significant growth, reaching $26.7 billion, up 17% from $22.8 billion year-over-year.

Overall, Mondelez International Inc. has demonstrated strong growth and improved profitability, driven by its focused strategy and successful portfolio reshaping efforts. The company’s ability to adapt to changing consumer preferences and navigate economic uncertainties reflects its long-term vision and commitment to delivering attractive growth.

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