Global snacks giant Mondelez International Inc. has called for slower growth this year due to “greater-than-usual volatility as a result of geopolitical uncertainty.” Despite this outlook, the maker of popular snack and candy brands such as Oreos and Ritz crackers expects net revenue growth between 3% and 5% for 2024. In 2023, Mondelez experienced a modest growth of over 14%.
In the fourth quarter, Mondelez earned $950 million, or 70 cents a share, compared to $585 million, or 42 cents a share, in the same period the previous year. Adjusted for special items, the company’s earnings per share came in at 84 cents, exceeding FactSet’s expectations of 78 cents.
With fourth-quarter sales reaching $9.31 billion, a 7% increase from the previous year, Mondelez’s performance aligns with FactSet’s consensus. CEO Dirk Van de Put highlighted balanced growth across developed and emerging markets last year.
In the future, the company aims to continue executing its strategy while significantly increasing investments in brand development, capabilities, and talent. Despite the anticipated slowdown, Mondelez remains confident of sustainable top- and bottom-line growth.
Analysts at Jefferies have positively assessed Mondelez’s performance, noting strong sales in Europe and retail sales in North America. Jefferies maintains a buy rating on Mondelez’s stock with a price target of $85, implying an 11% upside from current prices.
Although Mondelez’s stock experienced a 4% decline in after-hours trading following the earnings release, it had risen by 0.8% during regular trading hours. Over the past year, Mondelez’s stock has gained 17%, slightly lower than the 23% increase in the S&P 500 index.
