“And overall, as we found in our State of Snacking Survey released last week, the tendency for daily snacking is up for a third consecutive year. “The pandemic continues to fuel the desire for comfort and indulgence, benefiting our categories and trusted brands,” Mr. The fourth quarter was not without positives in North America. “The margins will also improve, but it's going to be sequentially.” “As we look at Q1, we expect the top line in North America to improve,” Mr. 1 were not yet reflected in 2021 results but will be helpful in the new year. He noted that price increases announced for Jan. “Those external manufacturers are facing labor challenges, and we expect also that we will continue to see some pressures in that area, at least for Q1,” he said. Van de Put said Mondelez is more reliant on contract manufacturing than its competitors, exacerbating its challenges. And so we think that we will still continue to see on shelf effects from the strike throughout Q1.” And although improving, it’s going slower than you would normally expect because of all the supply chain disruption that everybody is experiencing. “If you look at the last quarters, we had the strike in Q3, which left us with low inventory levels. But for a two-year CAGR (compound annual growth rate), we’re at 4%, which is still quite strong. And if you look at North America, we grew or we were flat for the year, let’s say. “And so in between those is our inventory, of course. “Demand remains very robust, but our growth that you see is impacted by supply chain constraints and phasing of some of the price actions,” he said. Van de Put said Mondelez has not been able to fully resupply customers during the period and noted that sales in 2021 were strong relative to 2019. One analyst noted that the limp sales results in the fourth quarter appeared at odds with robust demand during the period indicated in Nielsen retail data. 27 management conference call with investment analysts. The effects of the strike, global inflation and supply chain challenges were the subject of extensive discussion in a Jan. Efforts to rebuild inventories have been hampered by supply chain difficulties. 18 strike at Nabisco plants, management had warned that the stoppage took a toll on inventories. While the company was able to mitigate the third-quarter effects of an Aug. Sales were $2.19 billion, up 0.6% from $2.18 billion. Fourth-quarter operating income in North America was $361 million, down 20% from $453 million a year earlier. Sales were $8.3 billion, up 1.8% from $8.16 billion in 2020. Hangover effects from a work stoppage in the company’s third quarter weighed on North America results in the fourth quarter and for the full year.Īdjusted operating income of the North America business of Mondelez in 2021 was $1.59 billion, down 10% from $1.77 billion in the year ended Dec. We further strengthened our portfolio with the addition of several growth accretive acquisitions, which increase our exposure to broader snacking categories and expanding profit pools.” “We continued to execute well against our strategic growth initiatives with volume-led top-line growth, strong profitability, increased investments in brands and capabilities, and strong free cash flow generation. “2021 marked another year of strong top- and bottom-line results despite a challenging macro environment,” said Dirk Van de Put, chairman and chief executive officer. Adjusted earnings per share rose 9%, strength Mondelez attributed to operating gains, higher earnings from equity method investments and lower interest expense, partially offset by higher taxes.
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