Pricing and volume drive revenue growth for Mondelēz

Mondelēz International has reported 9.7 percent increase in net revenues for its 2022 fiscal, driven by organic net revenue growth of 12.3 per cent, and incremental sales from the company’s acquisitions, primarily Chipita, Clif Bar and Ricolino.

The Cadbury and Oreo maker said pricing and volume were the main drivers of organic net revenue growth.

Gross profit increased $58 million (£47m), but gross profit margin decreased 330 basis points to 35.9 per cent, which the company attributed to unfavorable year-over-year change in mark-to-market impacts from derivatives and a decrease in adjusted gross profit margin due to higher raw material and transportation costs and unfavorable mix, partially offset by pricing.

Adjusted EPS was $2.95, up 11.9 percent on a constant currency basis.

“Our 2022 results demonstrate the strength and diversification of our portfolio as we delivered broad-based growth in terms of regions, categories, and brands,” commented Dirk van de Put, Mondelēz chief executive.

“We delivered strong gross profit dollar growth, driven by double-digit top-line growth supported by both pricing and volume, enabling robust cash flow generation and significant return of capital to shareholders. These results were underscored by continued strength in emerging and developed markets as well as solid contributions from our recently acquired businesses.”

“We made significant progress against our strategy of accelerating growth and focusing our portfolio in the attractive, resilient categories of chocolate, biscuits and baked snacks, while continuing to invest in our brands and capabilities. We also continued to deliver strong marketplace execution amid challenging operating conditions and continued macroeconomic volatility.”

For 2023, the company expects organic net revenue growth of 5 to 7 per cent, high single-digit adjusted EPS growth on a constant currency basis. The company estimates currency translation would decrease 2023 net revenue growth by approximately 1 percent4 with a negative $0.04 impact to Adjusted EPS.