Mondelez International Inc raised its full-year organic revenue forecast on Tuesday, encouraged by higher demand for its Oreo biscuits and Cadbury chocolates in emerging markets.
Demand for the Trident gum maker’s biscuits and snacks has picked up across China, India, Russia and other emerging markets which had struggled to pull in sales last year while pandemic-led curbs kept people at home.
Mondelez is now doubling down on those markets by ramping up capacity and increasing production lines rather than opening new facilities, in an effort to save costs.
The company also left its full-year profit forecast unchanged as it faces rising costs of edible oils, packaging, transportation, and even labor.
Shares of the Toblerone maker fell about 2% aftermarket, even though the company forecast full-year organic net revenue growth of more than 4% versus its prior estimate for an over 3% increase.
In developed markets, meanwhile, remote work trends staying largely in place has helped Mondelez as people continue to munch on its Cadbury chocolates and Chips Ahoy biscuits while they work.
Net revenue from the company’s developed markets segment grew 8.9% to $4.35 billion in the second quarter ended June 30, while the emerging markets unit brought in $2.29 billion, nearly 20% higher than last year.
Total net revenues rose 12.4% to $6.64 billion, beating analysts’ average estimate of $6.42 billion, according to IBES data from Refinitiv.
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