Mondelez International, Inc. (MDLZ) stock jumped today after the company, a global snack produced, announced better-than-expected earnings for the third quarter of 2021.
Adjusted EPS was $0.71, up 9.4% on a constant-currency basis, while net revenues increased 7.8% driven by Organic Net Revenue growth of 5.5%.
Mondelez attributed their earnings beat to “favorable currency and acquisitions.” When referring to their operations and logistics segment, the company admitted results in the quarter were mixed.
The company saw higher raw material and transportation costs, unfavorable mix, and higher advertising and consumer costs. However, these were partially offset by pricing, manufacturing productivity, lower overheads and lower amortization of intangible assets.
Acquisitions played a key role in the company’s strong revenue numbers, with incremental sales from the company’s acquisitions of Hu, Grenade and Gourmet Food proving immediately profitable.
In regards to their overall business strategy, Mondelez stated that their “strategy and long-term algorithm remain unchanged.”
Adjustments for Inflation
Dirk Van de Put, Chairman and CEO, warned that while “demand for our categories and brands remains vibrant and volume growth is solid, we are implementing pricing to reflect higher inflation.”
Van de Put expects “elevated inflation and logistics volatility to persist,” but remains confident “in our plans to deliver on our financial algorithm, supported by compounding brand investments, and pricing as necessary”