US: Mondelez ups snacks focus in restructuring drive
Mondelez International said today (6 May) that it has zeroed-in on its snack business as it booked an increase in first-quarter earnings.
The group struck a deal that will see it combine its coffee portfolio with Master Blenders in a move that will create the "world's leading" pure-play coffee group. Mondelez said it will receive post-tax proceeds of around US$5bn and a 49% stake in the new entity.
Following the deal, snacks will generate around 85% of Mondelez's net revenue, the company said.
Mondelez also announced plans to reduce operating costs to "best in class" levels. The company launched a restructuring programme that it said will deliver annualised cost savings of US$1.5bn by 2018. Mondelez said that it will invest $3.5bn in lowering costs. Previously, the company had said it intended to expand margins by 15-16% by 2016.
"The strategic and cost-reduction actions we announced today underscore our determination to become a leaner, more focused and more nimble global snacking powerhouse," said Irene Rosenfeld, chairman and CEO.
On a reported basis, first-quarter net revenues were $8.6bn, down 1.2%. Operating income was $843m, up 1.1%.
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Mondelez International, Inc. (MDLZ) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been com...
Mondelez International was created in October 2012 as Kraft Foods Inc has restructured its operations into two independently listed entities. Mondelez is home to the international snack food portfolio...
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