US snacks large Mondelez Worldwide upped its gross sales progress forecast for 2021 after seeing its emerging-markets enterprise speed up within the second quarter.
The Cadbury Dairy Milk proprietor now expects to develop its web income on an natural foundation by greater than 4% this yr, in comparison with its earlier forecast of at the least 3%.
Mondelez, additionally house to manufacturers together with Oreo biscuits and Lu crackers, stored its forecast for its “adjusted earnings per share” – measured at fixed currencies – to rise at a “excessive single-digit” charge in 2021.
“By way of EPS, we proceed to anticipate excessive single-digit progress for the complete yr. We’ve got not factored within the full advantage of the top-line further progress on EBIT as we’ll proceed to reinvest the volume-driven upside again within the enterprise to maintain our [market] share efficiency,” CFO Luca Zaramella informed buyers on a convention name to debate the outcomes.
“By way of pricing and inflation, I might say there’s going to be extra within the second a part of the yr. To start out with our pipeline of commodities and foreign exchange has been advantageous within the first a part of the yr, and we anticipate some commodities and foreign exchange impression to be comparatively larger within the second half. So, there might be some extra stress in Q3 particularly. However we’ll proceed to be very disciplined when it comes to value and pricing.”
For the three months to 30 June, Mondelez’s web income rose 12.4% to US$6.64bn, or by 6.2% on an natural foundation. Pricing accounted for two.2 share factors of the natural progress.
Mondelez noticed its web income rise 19.6% year-on-year in its rising markets. The corporate was lapping a interval of volatility in some nations, together with Brazil, Mexico and India, the place gross sales within the second quarter of 2020 had been uneven in opposition to the backdrop of the early months of the pandemic.
Gross sales in India had been affected on this yr’s second quarter by contemporary lockdowns however the firm noticed double-digit progress within the nation, in addition to in Brazil, Russia and Mexico. Zaramella mentioned Mondelez’s natural income progress in its rising markets had been 16% within the second quarter “and greater than 5% on a two-year foundation”.
Mondelez’s reported working revenue was up 22.3% within the second quarter at $872m, or by 14.3% on an natural foundation. Internet earnings virtually doubled to $1.08bn.
Within the second quarter of 2020, Mondelez’s reported web earnings suffered as a result of objects together with prices associated to its possession of a stake in scorching drinks group JDE Peet, in addition to the group lapping a profit final yr from pension adjustments and foreign money/commodity hedges. On an adjusted foundation, the corporate’s web earnings on this yr’s second quarter rose 6.7% adjusted.
Chairman and CEO Dirk Van de Put mentioned: “We delivered one other robust quarter of efficiency throughout all key metrics, together with top-line, profitability and money technology. We proceed to see power throughout the overwhelming majority of our geographies, classes and types as we stay intensely targeted on constant execution and reinvestment to additional strengthen our place.”