Better management of input costs and higher sales in emerging markets have helped global snacks giant Mondelez International report higher underlying profits in 2012.
The Cadbury owner booked a 4% increase in operating income to US$3.64bn for last year.
Adjusted operating income, excluding items including forex and hedging activities, was up 7.1% at $4.88bn.
Mondelez pointed to “effective management” of input costs and “favourable volume/mix” for the improvement.
On a reported basis, net revenue was down 2.2% at $35bn. However, organic net sales were up 4.4%. Mondelez said its “power brands”, which include Cadbury, Oreo biscuits and Tassimo coffee, saw an 8.1% increase in sales.
Higher interest and costs linked to the spin-off of North American grocery business Kraft Foods Group hit Mondelez’s bottom line. Net earnings were down 14.1% at $3.03bn.
The company upped its forecast for operating earnings in 2013 to $1.52-1.57 a share to reflect exchange rates in 2012 and the recent devaluation of the Venezuelan bolivar.