Oreo maker softens selling outlook as emerging markets rebound

July 27 (Reuters) – Mondelez International Inc (MDLZ.O) raised its organic revenue forecast for the full year on Tuesday, as more consumers munched on the food giant’s Oreo cookies and Cadbury chocolates in emerging markets, particularly Brazil and China.

Demand for cookies and snacks from Toblerone maker increased in India, Russia and other emerging markets which struggled to generate sales last year as restrictions caused by the pandemic kept people at home.

“Mobility is increasing as restrictions ease, but home consumption remains high and it looks like higher levels of working from home and online shopping are here to stay,” CEO Dirk said. Van de Put on a call.

Mondelez is now doubling its focus on emerging markets by increasing capacity and expanding production lines rather than opening new facilities, in an effort to cut costs. Its emerging markets segment brought in $ 2.29 billion in the second quarter, nearly 20% more than last year.

However, shares of gum maker Trident fell about 2% after the market, as the company left its full-year profit forecast unchanged. Mondelez has faced inflationary pressures, although it plans to counter rising raw material costs by raising product prices and reducing packaging expenses.

“The constant currency earnings forecast for 2021 has not been raised, which has disappointed some investors,” JP Morgan analyst Ken Goldman said.

Still, Mondelez expects organic growth in net sales of over 4% for the full year compared to its previous estimate of an increase of over 3%.

The company’s developed market segment net sales increased 8.9% to $ 4.35 billion in the quarter.

Total net income rose 12.4% to $ 6.64 billion, beating analysts’ average estimate of $ 6.42 billion, according to IBES data from Refinitiv.

Report by Aditi Sebastian and Uday Sampath in Bengaluru; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.