(Reuters) -Cadbury-parent Mondelez International beat Wall Street estimates for second-quarter revenue on Tuesday, supported by steady consumer demand for its higher-priced chocolates and biscuits, particularly in international markets including Europe.
To offset rising input costs such as cocoa, the Milka and Toblerone chocolate maker has raised prices over successive quarters, boosting profits. Resilient demand despite the hikes supported revenue growth in key segments such as Europe.
Volumes in
Europe, a major revenue contributor, were down 1.3 percentage points (pp), compared to a 3.1 pp dip a year ago, while revenue in the segment surged 18.7%, driven by a 13.8 pp rise in pricing.
Volumes rose 0.7 pp in Asia, the Middle East & Africa, reversing a 1.8 pp drop a year earlier. In contrast, North America volumes declined 2.4 pp, widening from a 1.2 pp fall in the prior-year quarter.
Macroeconomic uncertainty from U.S. trade tariffs under President Donald Trump has pressured consumer spending in the United States, pushing budget-conscious shoppers toward cheaper private-label alternatives.
Mondelez, which reported the trend last quarter, said it plans to counter it through value-focused price packs.
Shares of the Chicago-based snack maker fell about 3% in after-hours trading but are up nearly 16% so far this year.
The company reported net revenue of $8.98 billion for the quarter ended June 30, topping analysts' average estimate of $8.84 billion, according to data compiled by LSEG.
On an adjusted basis, Mondelez earned 73 cents per share for the quarter, compared with analysts' average estimate of 68 cents per share.
The company maintained its forecast for 2025 organic net revenue growth of about 5%, but continues to expect adjusted profit to decline 10%.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim Zahid)
