Mondelez International Inc.
MDLZ 0.93%
reported a double-digit boost to its fourth-quarter sales, helped by higher prices for its cookies and candies, as well as added revenue from recent acquisitions.
The Chicago-based maker of Oreo cookies and Triscuit crackers said Tuesday that sales climbed 14% in the recent period to $8.7 billion, beating analysts’ expectations of $8.33 billion, according to FactSet.
Mondelez, which also makes Sour Patch Kids candy, Cadbury Dairy Milk and Toblerone, has increased prices in recent months to help offset rising costs. The company said those pricing actions continued to offset higher raw material and transportation costs in the recent quarter.
Other packaged-food giants, including
Kellogg Co.
,
Kraft Heinz Co.
and
Conagra Brands Inc.,
have also hiked prices, saying the moves are necessary to offset their own climbing costs for ingredients, transportation and labor. Conagra, which makes Hunt’s ketchup and Slim Jim meat sticks, recently said it doesn’t plan on taking more significant pricing actions this fiscal year, assuming inflation doesn’t rise further.
Mondelez’s quarterly sales were also led higher by incremental revenue from recent acquisitions, said Chief Executive Dirk
Van de Put.
That includes the purchases of energy bar maker Clif Bar & Co. and baked goods company Chipita Global SA, deals valued at $2.9 billion and $2 billion, respectively.
Profit declined to $583 million, or 42 cents per share, from $1 billion, or 71 cents per share, a year ago, led lower by factors such as higher acquisition integration costs and unfavorable impacts from currency and commodity derivatives. Adjusted per-share earnings came to 73 cents, above the 70 cents analysts were expecting, according to FactSet.
For 2023, the company guided for organic net revenue growth of 5% to 7% and for high single-digit growth to its adjusted earnings per share, without factoring in currency fluctuations.
The company estimates the impact of foreign exchange will weigh on revenue growth by about 1%, and adjusted per-share earnings will be hit by about 4 cents.
Mr. Van de Put says the company is making progress in its strategy to focus on its chocolate, biscuits and baked snacks categories. The company recently agreed to sell Trident, Dentyne and other gum brands in developed markets for $1.35 billion.
Write to Kathryn Hardison at [email protected]
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