Home Finance Mondelez predicts a steep fall in the annual profit on rising cocoa prices

Mondelez predicts a steep fall in the annual profit on rising cocoa prices

by Eclipsnews
0 comments

(Reuters) -cadbury parent Mondelez International predicts a larger than estimated decrease in its annual profit on Tuesday, signaling pressure of higher costs, including from rising cocoa prices, which send its shares almost 6% after the bell.

Prices of cocoa – an important ingredient in chocolate – have increased ruthlessly in the past year, so that companies such as Mondelez have to increase the prices of their products.

That is what budget-disturbed consumers, who were already struggling with a cost of living crisis, has cheaper alternatives.

The Chicago -based Mondelez expects that the profit of 2025 will fall by 10% on an adapted basis compared to the average estimate of the analysts of a decrease of 6.7%, according to data collected by LSEG.

“These prospects do not reflect any imposition of import tariffs by the US and potential retaliation actions that are taken by other countries, because the rate and the trade environment are currently evolving uncertain and quickly,” said the Oreo and Toblerone maker.

The volumes of Mondelez in Europe, the largest market due to sales, fell in the fourth quarter due to incremental price increases. In North America, however, volumes increased after a reduction in prices of 0.9 percentage points.

The rise in cocoa prices, in combination with higher transport costs, led to a decrease of 650-base point in the adapted gross profit margin of the company to 31.5%.

Mondelez reported the net turnover of $ 9.60 billion for the three months ending on December 31, compared to the estimates of $ 9.64 billion.

On an adapted basis it earned 65 cents per share, under the estimate of the analysts of 66 cents per share.

(Reporting by Neil J Kanatt in Bengaluru; adaptation by Shilpi Majumdar)

You may also like

Leave a Comment

Experience a world of information in one place! Our site covers breaking news, beauty, lifestyle, entertainment, tech, and travel – your gateway to a diverse and enriching news landscape.

Subscribe our newsletter for latest lifestyle, tech update. Let's stay updated!

 
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00

Adblock Detected

Please support us by disabling your AdBlocker extension from your browsers for our website.