Oreo maker increases growth forecast thanks to demand for cookies, sweets
By Ramishah Maruf, CNN
New York (CNN) — The maker of Oreo and Cadbury Dairy Milk chocolate is thanking an increased demand for sweets in the first half of the year for its positive forecast, Mondelez (MDLZ) International said in its second quarter earnings call Thursday.
“We feel good about continued consumer confidence,” the company said on its earnings call, saying the Chicago-based manufacturer continued to drive robust demand in its core categories of chocolates and biscuits.
It expects a 12% organic net revenue growth compared to an analyst estimate of 10%, driven in part by high demand for its snacks offsetting the high cost of goods.
It’s their second quarter in a row of growth. The company increased its net revenue and earnings outlook in the first quarter as well, saying its strong performance was due to demand for its snacks and reducing its coffee equity stakes.
In the second quarter, net revenue increased 17% to $8.51 billion. Analysts predicted revenue of about $8.21 billion.
US grocery prices stayed steady in June after ticking up in May. It’s notable there was strong demand for snacks as extreme weather, the war in Ukraine, avian flu and higher costs along the supply chain increased global food prices.
The company lagged in Europe, due to “expected disruption driven by retailer negotiation.” But it said Oreo in China, for example, is one of the brand’s most important emerging markets.
Mondelez’s portfolio includes other household names, such as Ritz, LU, Clif Bar, Tate’s Bake Shop, Milka and Toblerone.
Shares of Mondelez rose 1.65% in after hours trading.
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CNN’s Danielle Wiener-Bronner contributed to this report.
