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...
2013 saw Mondelez International Inc complete its first full year as a separate company after its split from Kraft Foods Inc and remains the second largest packaged food company globally. With a stream...
- Why Arla upbeat about LatAm prospects
- M&A Watch - Could Cloetta be takeover target?
- Comment: Can Applegate retain trust under Hormel?
- How the Applegate acquisition will benefit Hormel
- Sweets & Snacks Expo: just-food's pick
- Yildiz eyeing further deals - reports
- PAI, Pamplona "eyeing Bakkavor stake"
- Heinz, Boulder face off in Smart Balance TM spat
- Weetabix gets new private-equity investor
- FrieslandCampina ends Bongrain German tie-up
- Successful New Product Development Strategies in the Food, Drinks and Personal Care Market
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- The Future of the Ice Cream Market in the United Kingdom to 2019
- Consumer Foodservice in Indonesia
- Marks & Spencer (Asia Pacific) Ltd in Retailing (Hong Kong, China)