Mondelez's Results Top Expectations
October 26 2016 - 9:10AM
Dow Jones News
Mondelez International Inc. said its adjusted per-share earnings
beat expectations for the third quarter and the company raised its
2016 guidance.
The latest results come after Mondelez ended its pursuit of
Hershey Co. in August, as the famed chocolatier rebuffed the Oreo
cookie maker's latest acquisition offer. Mondelez's monthslong
takeover campaign would have created the world's largest candy
company.
Mondelez on Wednesday said it raised its 2016 adjusted per-share
earnings outlook to an increase of roughly 25% excluding currency
effects. Mondelez previously projected adjusted per-share profit to
grow by a double-digit %.
Mondelez and other big food companies continued to face
challenges from a shift by U.S. consumers toward foods perceived as
healthier. The snack maker also increasingly has looked to emerging
markets for growth.
Overall, Mondelez reported a profit of $548 million, or 35 cents
a share, down from $7.27 billion, or $4.46 a share, a year earlier.
The year-earlier earnings were boosted by the company's interest in
coffee maker Jacobs Douwe Egberts. Excluding items, adjusted
per-share earnings rose to 52 cents from 38 cents.
Revenue decreased 6.6% to $ 6.4 billion. Organic sales—which
typically exclude currency impacts, acquisitions and
divestitures—grew 1%.
Analysts polled by Thomson Reuters expected per-share profit of
43 cents and revenue of $6.45 billion.
Gross margin fell 0.1 percentage point to 38.9%.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
October 26, 2016 08:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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