Mondelez, the global confectionery powerhouse, reported a substantial rise in profits for the third quarter of 2024, illustrating a strategic shift in its core operations.
Mondelez International, famously known as the parent company of Cadbury, announced a remarkable increase in operating profits for the quarter ending 30 September 2024. The company’s profits surged by 21% to reach £1.3 billion ($1.7 billion), surpassing market forecasts. Furthermore, net organic sales grew by 5.4% to £7 billion ($9.2 billion). This impressive financial performance was slightly tempered by the company’s strategic decision to sell its developed market gum business, including well-known brands like Trident and Dentyne, to Perfetti Van Melle earlier this year.
The company also reported a modest rise in quarterly volumes by 0.3 percentage points, complemented by a 5.1 percentage point increase in prices. This pricing strategy appears to have offset any volume limitations, allowing Mondelez to maintain robust financial results. Despite the sale impacting overall sales and profits, Mondelez’s leadership remains committed to a strategic reshaping of its portfolio.
Dirk Van de Put, the chairman and chief executive officer of Mondelez, described the performance as ‘robust’. He emphasised the company’s dedication to top-line growth, strong earnings, and cash flow generation, citing the strategic partnership with Evirth in China as a pivotal move in broadening their product offerings. Van de Put highlighted ongoing efforts to reinvest in brands, drive distribution, and enhance capabilities, all while maintaining cost discipline.
This quarterly success comes on the heels of a challenging financial year for Mondelez’s UK operations, which saw a 33% drop in pre-tax profits to £88.1 million as of 31 December 2023. Despite these challenges, Mondelez’s global outlook remains promising as it continues to explore strategic partnerships and market opportunities.
Mondelez’s third-quarter results highlight a strong performance amidst a shifting business landscape. By offloading non-core segments and reinforcing its strategic partnerships, the company aims to sustain its growth trajectory and adapt to evolving market demands.
