Mondelēz, the renowned confectionery conglomerate, has reported a significant decline in its UK pre-tax profits for 2023, despite witnessing an impressive rise in sales.
According to the financial results, the company’s pre-tax profit plunged by 33%, amounting to £88.1 million in the fiscal year ending 31 December 2023. This decline occurred even as the company’s sales surged by 13.3%, reaching £2.21 billion. Mondelēz’s portfolio includes prominent brands such as Cadbury, Toblerone, Oreo, Belvita, Ritz, and Philadelphia.
Interestingly, in a separate financial disclosure, Mondelēz revealed that Cadbury, one of its flagship brands, experienced a substantial increase in both profits and sales. Cadbury’s pre-tax profit escalated to £42.3 million, with sales up by 9% to £155.8 million over the year.
The board of Mondelēz UK described the year as a ‘success’ despite facing challenges such as the cost-of-living crisis. According to Mondelēz, the rise in turnover was driven by ‘strong customer relations, marketing and innovation’. Additionally, the board noted that marketing activities have enhanced consumer loyalty across key brands, channels, and customers.
Furthermore, Mondelēz’s corporate venture capital arm, SnackFutures, recently expanded its investment portfolio by acquiring a minority stake in Urban Legend, a brand known for its non-high fat, sugar, and salt (non-HFSS) doughnuts.
These developments highlight Mondelēz’s strategic efforts to navigate economic challenges and bolster its market position through innovative investments and brand loyalty initiatives.
