Mondelēz International has reported solid revenue growth for the third quarter of 2025, despite what its chief executive described as “record-high cocoa cost inflation” hitting margins across its global snacking portfolio.
The maker of Cadbury, Oreo and BelVita said net revenues rose 5.9 per cent year on year, with organic net revenue up 3.4 per cent. However, this was driven almost entirely by higher prices, with volume/mix down 4.6 per cent as cost pressures continued to affect production and consumer demand in some markets.
Dirk Van de Put, Mondelēz’s chair and chief executive officer, said the company was managing through “the peak costs of the year” in third quarter but was encouraged by signs of moderation in cocoa prices and expectations for a stronger crop this autumn.
“Our teams are focused on executing clear plans for volume improvement, significantly increasing growth investments, and driving meaningful cost efficiencies,” Van de Put said. “We remain confident in our strong business fundamentals, which position us well for next year and beyond.”
The company’s gross profit margin fell sharply by 580 basis points to 26.8 per cent, reflecting higher raw material and transport costs and an unfavourable product mix. Adjusted operating income margin also dropped by 690 basis points to 12 per cent.
Diluted earnings per share declined 9.5 per cent to $0.57, while adjusted EPS fell 24.2 per cent on a constant currency basis to $0.73. Mondelēz attributed the earnings drop to input cost inflation and acquisition-related charges, partly offset by lower manufacturing and overhead costs.
Despite margin pressure, Mondelēz continued to return capital to investors, distributing $3.7 billion (£2.8bn) through dividends and share buybacks in the first nine months of 2025.
The company updated its full-year guidance, now expecting organic net revenue growth of ‘4 per cent+’ and an adjusted EPS decline of around 15 per cent on a constant currency basis. Free cash flow is forecast to exceed $3 billion.