Cyberattack hits Mondelez International's top line

by Matt Hamer
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Mondelez estimates it may lose 300 basis points of second quarter revenue growth.
 

DEERFIELD, ILL. – A June 27 cyberattack that affected companies around the world has taken a toll on Mondelez International. The company released a partial financial forecast in the wake of the attack and estimated that the revenue impact will be a negative 300 basis points on second-quarter growth. Management said it is still assessing the full financial impact, but reaffirmed its full year organic revenue growth outlook of “at least 1%.”

“Given the timing of this significant global attack, despite our best efforts, we experienced disruption in our ability to ship and invoice during the last four days of our second quarter,” Mondelez said in a statement. “There are a few markets where we have permanently lost some of that revenue due to holiday feature timing, but we expect we will be able to recognize the majority of these delayed shipments in our third quarter results.”

Petya software, a form of malicious ransomware, affects computer systems by encrypting important files and documents and demanding payment in exchange for a digital key to unlock the files. No information has been released regarding the source of the attack or the motivation behind the choice of targets.

Cyber attack
Petya software affects computer systems by encrypting important files and documents and demanding payment in exchange for a digital key to unlock the files.
 

Other organizations successfully targeted by the cyberattack include consumer goods company Reckitt Benkister, Slough, UK, pharmaceutical manufacturer Merck, Kenilworth, N.J., and multiple government and infrastructure targets in Ukraine and Russia. Sixty per cent of the affected systems were located in Ukraine, including the radiation-monitoring system in Chernobyl, the power grid, banks and airports.

Mondelez said that it is making good progress in restoring its systems, congratulating its teams on the work they have put in to continue to operate the business, manufacture its products and serve customer needs despite the setback.

The company said a majority of the affected systems are now operational. Though the full extent of the damage is still unknown, the company plans on releasing its second quarter results and its full-year outlook during its second quarter earnings call and webcast in August. 
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