© Reuters. FILE PHOTO: Oreo biscuits are seen displayed in entrance of Mondelez International brand on this illustration image taken July 26, 2021. Picture taken July 26, 2021. REUTERS/Dado Ruvic/Illustration
(Reuters) -Mondelez International Inc raised its annual sales forecast on Tuesday, as value will increase and robust demand from emerging markets helped the Oreo cookie maker beat estimates within the third quarter.
Demand for its biscuits and snacks has bounced again throughout China, India, Latin America and different emerging markets after tepid sales final 12 months, when the financial toll of the pandemic dealt a pointy blow to shopper spending in these areas.
Shares of the Chicago, Illinois-based firm rose 2.3% in after market commerce, as internet income from its emerging markets phase grew 12.9% to $2.58 billion within the third quarter, following a 3.1% fall final 12 months.
The chocolatier is now doubling down on these markets by rising manufacturing strains to ramp up capability somewhat than open new amenities, in an effort to avoid wasting prices.
Like different packaged meals makers similar to Campbell Soup (NYSE:) Co and Conagra Brands (NYSE:) Inc, Mondelez (NASDAQ:) has been elevating product costs in current months to deal with larger prices of substances similar to sugar and wheat, in addition to packaging, transportation and labor.
“Costs have moved higher in the second half of the year relative to the first half, and we expect inflation to persist in 2022,” mentioned Chief Executive Officer Dirk Van de Put in a post-earnings name.
Mondelez now expects full-year natural internet income progress of about 4.5%, in contrast with its prior forecast of an over 4% improve. Analysts on common had been anticipating 4.25%, in accordance with IBES knowledge from Refinitiv.
Net income for the third quarter ended Sept. 30 rose 7.8% to $7.18 billion, surpassing estimates of $7.03 billion.
Excluding gadgets, the Cadbury chocolate maker earned 70 cents per share on a continuing forex foundation, in contrast with expectations of 70 cents.
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