Snacks & Candy

Mondelez Sales Take Hit After Cyberattack

Second-quarter growth down 3%

DEERFIELD, Ill. -- A global cyberattack that struck Mondelez International in late June shrunk the company’s second-quarter revenue growth by 3%, the company said.

The Deerfield, Ill.-based snack and candy maker said it is making progress in restoring its systems after the June 27 attack, which disrupted its shipping and invoicing in the last few days of the second quarter.

“There are a few markets where we have permanently lost some of that revenue due to holiday feature timing, but we expect we will be able to recognize the majority of these delayed shipments in our third-quarter results,” Mondelez said in a statement.

The company said it also expected “incremental one-time costs” in the second and third quarters as a result of the cyberattack, but that it was still on track to achieve its “organic growth outlook of at least 1% growth” for the full year.

The company had net revenues of $6.4 billion in the first quarter, according to a report in the Financial Times. Mondelez reported net revenues of approximately $26 billion in 2016.

It said it is still assessing the full financial effects of the attack.

The so-called Petya ransomware struck in more than 60 countries, affecting businesses and government organizations alike. The software blocks computers and demands payment in exchange for unlocking them.

Mondelez International is a world leader in biscuits, chocolate, gum, candy and powdered beverages, featuring brands such as Oreo and belVita biscuits; Cadbury Dairy Milk and Milka chocolate; and Trident gum.

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