Mondelēz International, owner of Cadbury, faced a significant decline in its UK profits in 2023, despite an increase in sales.
- Pre-tax profits for Mondelēz UK dropped by 33%, reaching £88.1 million by the end of 2023.
- In contrast, Cadbury’s own pre-tax profit rose to £42.3 million, with sales up by 9% to £155.8 million.
- Mondelēz emphasized strong customer relations and innovative marketing as key factors in overcoming challenges like the cost-of-living crisis.
- SnackFutures, Mondelēz’s venture arm, expanded its portfolio by investing in the non-HFSS doughnut brand Urban Legend.
In 2023, Mondelēz International experienced a dramatic reduction in its UK profits, seeing a drop of 33% to £88.1 million pre-tax by the end of the year. This decline occurred despite a notable increase in overall sales, which surged by 13.3% to reach £2.21 billion. Mondelēz, known for iconic brands such as Cadbury, Toblerone, and Oreo, faced varied financial outcomes across its portfolio.
Conversely, Cadbury, a flagship brand under the Mondelēz umbrella, showed robust financial health in the same period. Cadbury’s pre-tax profits increased to £42.3 million, accompanied by a 9% rise in sales, totaling £155.8 million. These outcomes highlight the brand’s significant contribution to Mondelēz’s overall operations.
Despite the challenges posed by the cost-of-living crisis, Mondelēz marked the year as “successful.” The company attributed this success to strong customer relationships, innovative marketing strategies, and consistent consumer loyalty. These elements were crucial in maintaining sales momentum across their primary brands and distribution channels.
Further expanding its strategic initiatives, Mondelēz’s venture capital branch, SnackFutures, reinforced its investment strategy by acquiring a minority stake in Urban Legend, a non-HFSS doughnut brand. This move signifies Mondelēz’s commitment to broadening its portfolio with health-focused food innovations, aligning with contemporary consumer trends.
Mondelēz International’s varied financial performance in 2023 underscores its strategic agility amidst economic challenges.
