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Snacking boom helps Cadbury maker Mondelez profit surge past expectations

Published 04/27/2021, 04:13 PM
Updated 04/27/2021, 05:00 PM
© Reuters. FILE PHOTO: Logo of Mondelez International is seen in Opfikon

(Reuters) - Mondelez International Inc (NASDAQ:MDLZ) beat market expectations for quarterly revenue and profit on Tuesday as consumers in Asia, Africa and Europe stocked up on biscuits and healthy snacks amid COVID-19 lockdowns, sending its shares up 3.5%.

Food and snack makers have seen a surge in sales during the pandemic as consumers hunkered down at home sought comfort in familiar brands.

Mondelez has sharpened its focus on low-calorie and low-sugar products with its acquisition of vegan chocolate-maker Hu and protein bar firm Grenade, looking to tap rising demand for healthier options among consumers cutting out highly processed foods.

"We saw continued improvement across emerging markets, healthy demand in developed markets," Chief Executive Officer Dirk Van de Put said.

Net revenue from the Asia, Middle East & Africa segment grew 16.2% to $1.75 billion, while European market revenue grew 10.2% to $2.85 billion.

Mondelez, Hershey and other chocolate makers have harnessed the power of social and digital media to predict consumer shopping trends during the pandemic Easter season.

Mondelez's revenue rose to $7.24 billion from $6.71 billion a year ago, beating analysts' average estimate of $7.02 billion, according to IBES data from Refinitiv.

Net earnings attributable to the company rose to $961 million, or 68 cents per share, in the first quarter ended March 31, from $736 million, or 51 cents per share, a year earlier.

Excluding items, the Oreo cookie maker earned 77 cents per share, blowing past analysts' average estimate of 69 cents.

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