Cadbury and Oreo owner Mondelez International has lowered its full-year sales guidance as it booked lower-than-expected revenues in the third quarter.
Mondelez recorded sales of US$8.5bn in the period to the end of September, up 1.8% on last year. Organic revenues increased 5.3%.
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The firm, however, had expected organic net revenue, a measure that strips out the impact of acquisitions and other items, to grow around 4% for the year, against its earlier forecast of around 5%.
CEO Irene Rosenfeld said “weak” biscuit performance in China, continued headwinds from coffee pricing and slower global category growth led to revenue growth below its expectations.
As a result, Mondelez reduced its 2013 organic revenue growth outlook to around 4%. It raised its adjusted earnings forecast by 2 cents to $1.57-$1.62 per share.
Operating income increased to $1.3bn in the period, up 50.6%, while operating income margin was at 14.9%. Net earnings climbed 56.3% to $1.03bn.
“We delivered solid results in a difficult environment,” said Rosenfeld. “Both revenue and operating margin improved sequentially, fuelled by volume/mix gains of more than 5%, double-digit growth in emerging markets and increased global market shares.”
Revenues from emerging markets increased 10.7%, led by gains of mid-to-high teens in Russia, India and Brazil. China, however, declined double-digits reflecting softening macroeconomic conditions and weak biscuit performance.
In Europe, sales were up 4.3% and in North America sales edged up 1%.
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