Mondelez International saw its earnings fall in the first quarter amid costs related to the spin off of its grocery business, while lower coffee prices weighed on revenue growth.
Earnings in the three months to the end of March amounted to US$568m. This was down 30.1% on last year, before the company separated from Kraft Foods Group, it reported yesterday (7 May). Excluding items, earnings were 34 cents per share.
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Operating income was $0.8bn in the period, down 7.6%, while operating income margin was 9.5%.
The Oreo cookies maker, however, recorded net revenues of $8.7bn, 0.9% increase on last year. The company said the pass-through of lower coffee prices tempered sales growth by 1.3%.
While this is below the firm’s long-term target, Mondelez said the results show the group has built “solid underlying momentum”.
The firm raised its full-year earnings forecast due to a benefit from a tax item to a range of $1.55 to $1.60, from its previous estimate of $1.52 to $1.57. Mondelez also affirmed its revenue guidance.
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