Mondelez: results beat estimates on emerging markets
(CercleFinance.com) - Mondelez, the maker of Cadbury chocolates and Oreo cookies, reported better-than-expected quarterly profit and revenue, helped by solid volume growth in emerging markets.
The agri-food company's net income rose by 19.9% to 2.55 billion dollars, on revenue that fell 3.7% to 6.29 billion dollars, hurt by the impact of FX factors.
Organic growth reached 1.2%, the group said.
Looking ahead, Mondelez said it now expects FY 2018 organic growth to be approximately 2%, although some analysts view this guidance as "conservative."
"We believe the company's favorable growth trends in emerging markets (...) and its strong execution in Western Europe will offset its continued supply chain problems in the USA," Credit Suisse said.
Investors seemed to share this point of view on the group's prospects: in early-morning trading the Mondelez share was up 3.1% on Tuesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The agri-food company's net income rose by 19.9% to 2.55 billion dollars, on revenue that fell 3.7% to 6.29 billion dollars, hurt by the impact of FX factors.
Organic growth reached 1.2%, the group said.
Looking ahead, Mondelez said it now expects FY 2018 organic growth to be approximately 2%, although some analysts view this guidance as "conservative."
"We believe the company's favorable growth trends in emerging markets (...) and its strong execution in Western Europe will offset its continued supply chain problems in the USA," Credit Suisse said.
Investors seemed to share this point of view on the group's prospects: in early-morning trading the Mondelez share was up 3.1% on Tuesday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.