Mondelez “cautiously optimistic” as outlook rests on consumer uncertainty

Mondelez International is “cautiously optimistic” it tin upwind the effects from the Middle East situation but absorption suggested the large uncertainty is the consumer.

So far, the US-headquartered cocoa and biscuits elephantine has not seen immoderate existent interaction arsenic Mondelez reported its first-quarter results to 31 March, which would screen astir 4 weeks since the struggle started successful precocious February.

Chairman and CEO Dirk Van de Put told analysts yesterday (28 April) user assurance successful Europe is “fragile”, portion the existent “low” sentiment successful the US is apt to “deteriorate” the longer the stand-off lasts.

However, CFO Luca Zaramella said the Cadbury and Ritz brands proprietor has hedges successful spot to screen the lipid and packaging request for 2026, though helium added immoderate markets bash not let extortion strategies.

“That’s the outgo that volition materialise successful the remainder of the twelvemonth for which we person to account,” Zaramella said arsenic Mondelez kept its full-year outlook for integrated income and adjusted EPS unchanged.

Van de Put took a balanced presumption connected Mondelez's outlook arsenic helium told analysts that, from a class position successful the archetypal quarter, “there’s thing determination that we consciousness is starting to amusement that there’s a slowdown”.

Looking further ahead, helium added: “The consumer, to my opinion, volition stay rather anxious. I deliberation arsenic the struggle continues and they spot the effect of lipid prices, and they volition commencement to spot it successful immoderate of the different things they buy, I judge that that is not going to assistance with the wide user confidence.

“That doesn’t mean that our concern is not going to proceed to improve.”

As Mondelez completed its retail terms negotiations successful Europe during the 4th with nary existent hiccups, Van de Put said sentiment successful the portion is “stable” but “fragile”, with some snacking and biscuits request “holding up”.

In the US, however, helium said the “consumer remains precise acrophobic astir affordability, the economical outlook and occupation security”, with “flattish” worth maturation successful biscuits.

“Where determination is growth, that’s usually successful the worth nine channels and successful better-for-you and premium,” helium added.

In Mondelez’s cardinal emerging markets, lone China stood out, wherever user sentiment was “softer”, portion assurance was classed arsenic “positive” successful India, Mexico and Brazil.

Still, Van de Put said that “everywhere the user is rather cautious arsenic it relates to the struggle and what that could mean for ostentation and their vigor costs”.

As a counter, helium said: “You request to marque definite that you are wherever the user truly tin spend you”, adding: “That’s a large absorption that we person astatine the moment."