DEERFIELD, Ill. — Mondelez International surpassed $6.5 million in net sales during this year’s fiscal first quarter, a 3.7% increase in organic net revenue compared to last quarter, company executives said during Mondelez’s first-quarter earnings call April 30.
The company predicts its total organic net revenue will increase 2% to 3% by the end of the year, said Luca Zaramella, CFO of Mondelez, on the call.
"Our strong start to the year demonstrates clear progress against our plans to accelerate volume-led growth by adopting a more consumer-centric and agile mindset,” said Dirk Van de Put, chairman and CEO of Mondelez. "We continue to see solid fundamentals in our categories and key markets, including good momentum in emerging markets. Our progress reinforces our confidence that the investments we are making behind our global and local brands, our sales capabilities and our innovation will deliver sustainable long-term growth and create value for our shareholders.”
Here are three insights from Mondelez’s first-quarter 2019 …
Mondelez credits much of its first-quarter growth to its new strategic plan, which focuses on three pillars: consumer-focused growth, driven by insights on snacking behaviors and occasions; investing in global and local brands; and enhanced consumer marketing. These fundamental tactics helped Mondelez become a more consumer-centric company to start 2019, Van de Put said.
Last fall, Mondelez said one of its foremost goals was to “lead the future of snacking.” The company is headed in the right direction: Three of its core snacking categories—biscuits, chocolate and gum and candy—grew a combined total of nearly 3% during the first quarter. This was led by chocolate, which grew 5.9%.
“I want to call out Oreo, our biggest brand, which grew by double digits [abroad],” said Van de Put. “It is [also] important to note that we overindexed in Easter vs. many competitors. So we would expect share performance to improve next quarter.”
Mondelez also revealed plans to accelerate its Cocoa Sourcing program, an initiative that aims to help cocoa farmers in various communities across the company’s supply chain. During this year’s first quarter, Mondelez said it will source 100% of the cocoa used in its chocolates through this program by 2025. That would be an increase from 43% today, Van de Put said.
“This is a huge milestone for our program, our team and our company,” he said, “and also an important step toward further securing sustainable growth for Mondelez International.”