India business drives Mondelez's emerging market growth in Q3

Strong results accrued from chocolate business in India, Germany and Russia

India was among food-major Mondelez International’s key performers within emerging markets for the third quarter of 2017, the firm’s global chief executive officer (CEO), Irene Rosenfeld, said on Tuesday.

Addressing investors over a concall, Rosenfeld, who will step down as CEO in November, said India revenue grew in double digits in Q3 led by new launches in chocolates. “Key markets have fuelled revenue growth in the quarter within emerging countries. This includes India, Russia and Mexico. Emerging markets grew 4.8 per cent during the quarter, which included positive volume growth,” she said. 

At a time when India saw the roll-out of the goods & services tax resulting in trade disruption, Rosenfeld said conditions in emerging markets were gradually improving. “We think that sequential acceleration in emerging market growth is consistent with our view that these countries are improving. We are well-positioned to win as conditions improve,” she said, adding the firm would continue to invest behind its power brands in these markets.

Asia, West Asia and Africa, which constitute emerging markets for Mondelez, contribute nearly 30 per cent to global revenue, second only to Europe, which gives 40 per cent. North America contributes 20 per cent, and Latin America, 10 per cent.

For the September quarter, developed markets grew 1.6 per cent led by Europe, Rosenfeld said, adding it was led mainly by chocolates and biscuits. Germany and Russia, besides India, Rosenfeld said, were markets where the chocolate business delivered strong results.

Mondelez, earlier part of Kraft Foods, was demerged from the latter in 2012, as it sought to create a “snacks powerhouse”, led by brands such as Cadbury, Oreo, Tang and Toblerone.