Mondelez International has lowered its revenue expectations after posting a fall in sales for the first half of the year.
The firm said it was hit by “weaker category growth and temporary customer and consumer dislocations” as a result of its decision to lead on pricing, resulting in a revenue fall of 1.5% to US$17.1bn for the first half of the year.
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Net profit for the period ended 30 June also plunged 31% to $785m after the firm recorded higher income tax provisions and higher interest and expenses. Operating income for the first half of the year was up 5.9% to $1.8bn.
The firm’s second quarter sales followed a similar pattern, dropping 1.8% to $8.4bn.
Irene Rosenfeld, Chairman and CEO said: “Our revenue growth reflects this difficult global retail and consumer environment as well as a temporary dislocation related to our decision to lead the industry on pricing. Despite these challenges, we remain on track to achieve our margin and earnings commitments for the full year.”
Operating income for the second quarter however was up 10.6% to $957m and net profit was up 3.5% to $622m.
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By GlobalDataMondelez International has trimmed its organic net revenue expectations to 2-2.5%, down from its previous forecast of 3%.
Shares in Mondelez International fell 1.28% to $35.96 per share in pre-market trade today (6 August) at GMT14.26.
