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%.
Click here for the full release.
Mondelez International, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and ser...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
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...
- Why Heinz-Kraft merger could herald more deals
- The challenges awaiting ConAgra's new CEO
- Focus: Can Mars gain share in Indian chocolate?
- Analysis: Is Heinz, Kraft merger "a growth story"?
- Interview: FrieslandCampina eyes Gulf expansion
- Mondelez coy on Philadelphia sale rumours
- Fatal explosion at French desserts firm Senagral
- Aryzta buys 49% of French retailer Picard
- Infographic: Heinz, Kraft unveil combined business
- Buffett: Kraft Heinz to withstand health focus