FILE PHOTO: The logo of Mondelez International is seen on an office building in the Glattpark district in Opfikon, Switzerland October 2, 2018. REUTERS/Arnd Wiegmann
(Reuters) – Oreo cookies maker Mondelez International Inc reported a higher-than-expected growth in first-quarter core revenue on Tuesday, boosted by demand for its snacks and chocolates in emerging markets and higher pricing in Latin America.
Fast-growing countries such as China and India have been a focus area for Mondelez over the last few years, with the company tailoring products and marketing to the local regions.
Core, or organic, net revenue, which excludes the impact from acquisitions and currency fluctuations, rose 3.7 percent, beating analysts’ average estimate of a 2.3 percent increase, according to IBES data from Refinitiv.
Core revenue in emerging markets rose 8.4 percent.
Pricing in Latin America rose 9.9 percentage points as Mondelez, like other food companies, had to hike prices of cookies, gums and chocolates in the face of rising raw material and transportation costs.
Net earnings attributable to the company, which also makes Cadbury chocolates, fell to $914 million, or 63 cents per share, in the three months ended March 31, from $1.05 billion, or 70 cents per share, a year earlier.
Excluding one-time items, the company earned 65 cents per share, beating analysts’ average estimate of 61 cents.
The company’s shares rose 1.6 percent to 51.68 in extended trading.
Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila
