Mondelez International has reported higher global sales last year, but its bottom line saw a contraction due to higher commodity costs, including unprecedented hikes in cocoa prices.
The company, which owns brands such as Oreo, Cadbury, and Ritz, saw net revenues increase 5.8 per cent to US$38.5 billion for the year. Organic revenue also grew 4.3 per cent, driven by higher pricing, partially offset by unfavourable volume/mix.
Meanwhile, gross profit plunged 23 per cent to $10.9 billion and gross profit margin decreased 1070 basis points to 28.4 per cent, attributed to higher raw material costs and unfavourable product mix, partially offset by higher pricing and lower manufacturing costs.
Operating income fell 44 per cent, driven primarily by higher input cost inflation and unfavourable product mix. Net earnings dropped 46.8 per cent to $2.4 billion.
Chairman and CEO Dirk Van de Put said the company delivered solid top-line results in a dynamic and challenging year, adding that “unprecedented cocoa cost headwinds” impacted profitability.
By geography, sales in Europe rose 12.9 per cent, followed by Asia, the Middle East and Africa with an 8.7 per cent increase. Latin America saw a 0.5 per cent decline, while North America sales slid 2.5 per cent.
For the new year, Mondelez expects organic net revenue growth to be in the range of flat to 2 per cent.
The company noted that the outlook was provided in the context of “greater than usual volatility,” including geopolitical, trade, and regulatory uncertainty, as well as commodity prices.
“As 2026 commences, we are executing clear plans to create multi-year shareholder value through improved volumes, brand investments, structural cost savings and disciplined capital allocation coupled with stabilising cocoa costs,” Van de Put said.
