Mondelēz International has reported an 8% rise in full-year net revenue, but saw its Q4 gross margin squeezed by higher raw material and transportation costs.
On an organic basis – which excludes the impact of acquisitions and currency – net revenue grew 5.2%, driven by strong demand and pricing.
Organic net revenue growth, favourable currency and incremental sales from the acquisitions of Give & Go, Hu, Grenade and Gourmet Food all helped Mondelēz to increase its revenue to $28.72 billion in 2021.
The snack giant’s emerging markets business boosted its performance last year, posting an 11.4% rise in net revenue – compared with the 6.3% sales growth recorded by the company’s developed markets.
Mondelēz’s key North America region delivered the weakest net revenue growth of all its segments – with a 1.8% increase in sales.
For Q4, meanwhile, the owner of Cadbury and Oreo posted a 4.9% rise in net revenue to $7.66 billion, beating analysts’ estimate of $7.59 billion, according to IBES data from Refinitiv, cited by Reuters.
The company’s gross profit margin declined to 37% in the fourth quarter from 39.4% a year earlier. Like other packaged food makers, Mondelēz has been grappling with soaring shipping and labour expenses, as well as surging commodity costs.
“2021 marked another year of strong top- and bottom-line results despite a challenging macro environment,” said Mondelēz chairman and CEO, Dirk Van de Put.
“We further strengthened our portfolio with the addition of several growth accretive acquisitions, which increase our exposure to broader snacking categories and expanding profit pools.”
He continued: “We are confident that our brands, strategy and focus on execution position us well to successfully navigate near-term volatility; to profitably deliver against a clear set of sizable growth opportunities; and to achieve our long-term financial targets in 2022 and beyond”.
By Antonia Garrett Peel
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