Business Standard

Oreo maker Mondelez's revenue slips as strong dollar bites


(Reuters) - Oreo cookies maker Mondelez International Inc's revenue slipped 2.8 percent in the December quarter as the impact of a stronger dollar eroded income from its large overseas business.
Its international business, which accounts for nearly three-fourths of overall sales, saw revenue slip across its three main divisions: Asia, Middle East and Africa (AMEA), Europe and Latin America.
However, overall organic sales, which exclude the impact from acquisitions and currency fluctuations, rose 2.5 percent in the final quarter of 2018, driven mainly by moves to introduce healthier snacks to better serve fitness freaks and health-minded consumers.
The company's shares were largely unchanged at $43.81 in after-hours trading on Wednesday.
One bright spot was Mondelez's North America sales, which rose 1.6 percent, even as the company battles brutal competition and faces ever-changing consumer tastes.
Overall net revenue fell to $6.77 billion in the fourth quarter ended Dec. 31, matching analysts' average forecast, according to IBES estimates from Refinitiv.
Net earnings attributable to the company rose to $823 million or 56 cents per share, from $695 million or 46 cents per share a year earlier.
(Reporting by Nivedita Balu in Bengaluru; Editing by Sai Sachin Ravikumar)

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First Published: Jan 31 2019 | 3:37 AM IST

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