Mondelez International, the parent company of Cadbury, has reported a significant rise in its third-quarter profits, reflecting a strategic shift in its core portfolio.
- The company’s operating profits increased by 21% in the quarter ending September 30, reaching £1.3 billion.
- Net organic sales also grew by 5.4% to £7 billion, surpassing market expectations.
- However, the offloading of Mondelez’s developed market gum business slightly dampened overall sales and profits.
- CEO Dirk Van de Put emphasized ongoing portfolio reshaping and strategic partnerships.
Mondelez International, the well-known parent of Cadbury, has seen a notable boost in its third-quarter profits. The confectionery giant reported a 21% increase in operating profits, reaching £1.3 billion for the quarter that ended on September 30. This surge comes amid efforts by the company’s CEO, Dirk Van de Put, to realign its core portfolio, demonstrating a strategic shift in the company’s business approach.
In addition to profits, Mondelez also experienced an uptick in net organic sales by 5.4%, bringing this figure to £7 billion. Such growth exceeded market expectations and reflects a successful quarter for the company. Alongside sales, quarterly volumes slightly increased by 0.3 percentage points, coupled with a price rise of 5.1 percentage points, indicating both demand stability and pricing power.
Despite these positive trends, both sales and profits were mildly impacted by Mondelez’s decision to sell off its developed market gum business, which includes brands like Trident and Dentyne. This divestiture, completed in 2024, was directed to Perfetti Van Melle, marking a notable change in the company’s strategic focus.
CEO Dirk Van de Put described the quarterly results as ‘robust,’ highlighting the company’s commitment to operational excellence across various categories, markets, and brands. He emphasized the need for reinvestment in brands, enhancement of distribution networks, expansion of capabilities, and strict cost management. Van de Put also mentioned the strategic portfolio reshaping, such as the expanded collaboration with Evirth, a leading cake and pastry manufacturer in China.
Earlier this month, Mondelez’s UK division revealed a different financial picture with a 33% drop in pre-tax profits, totaling £88.1 million for the year ending December 31, 2023. Despite this, the parent company’s overall robust performance illustrates a strong business position and focus on long-term strategic growth.
Mondelez International’s third-quarter results underscore its strategic repositioning and focus on maintaining strong business growth.
