DEERFIELD, ILL. — Aggressive cost cutting and price increases boosted profit for Mondelez International, Inc. in the third quarter. Net earnings attributable to the Deerfield-based snack company for the period ended Sept. 30 surged to $7,266 million, equal to $4.52 per share on the common stock, which compared with $899 million, or 53c per share, for the prior-year period. Results included a $7,122 million gain from coffee business transactions and divestitures. In July, Mondelez closed on its joint venture to combine its coffee business with D.E Master Blenders 1753 to create Douwe Egberts. Mondelez retains a 43.5% interest in the joint venture.
Net revenues for the third quarter fell 18% to $6,849 million from year-ago revenues of $8,337 million. Excluding the negative impact of foreign currency exchange and the coffee business transactions, organic net revenue increased 3.7%, driven by pricing actions to offset currency-driven input cost inflation.
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| Irene Rosenfeld, chairman and c.e.o. of Mondelez |
“The third-quarter microenvironment remained challenging, but we continued to drive top-tier margin expansion while delivering solid organic revenue growth,” said Irene Rosenfeld, chairman and chief executive officer, during an Oct. 28 earnings call with financial analysts.
Mondelez also continues to strengthen its snack portfolio. This year, the company acquired Kinh Do biscuit business in Vietnam and Enjoy Life Foods, an allergen-friendly snack company in the United States.
“We’ll look for more opportunities in the future to strengthen our snacks business through additional bolt-on acquisitions like these,” Ms. Rosenfeld said.
The company reaffirmed its guidance for full-year results and continues to expect organic net revenue growth of 3% or higher.
Additionally, Mondelez announced organizational changes. Mark Clouse, chief growth officer for Mondelez, has been named to the newly created position of chief commercial officer, effective January 2016. Tim Cofer, executive vice-president and president, Asia Pacific and EEMEA, will succeed Mr. Clouse as chief growth officer. Concurrent with these changes, Maurizio Brusadelli will become president of Asia Pacific; Dave Brearton, executive vice-president, Strategic Initiatives, will retire at the end of the year; and Tracey Belcourt, executive vice-president, Strategy, will leave the company.
