Global snack giant Mondelez International called late Tuesday for a slowdown in growth this year, hedging that its outlook comes amid “greater-than-usual volatility as a result of geopolitical uncertainty.”
Mondelez MDLZ,
It said it expects net revenues to grow between 3% and 5% for 2024; The maker of Oreos, Ritz crackers and other popular snack and candy brands grew just over 14% last year.
Mondelez earned $950 million, or 70 cents per share, in the fourth quarter, compared to $585 million, or 42 cents per share, in the same period last year.
Adjusted for one-time items, the company earned 84 cents per share, beating FactSet's forecast for adjusted EPS of 78 cents.
Fourth-quarter sales rose 7% to $9.31 billion, in line with the FactSet consensus.
Mondelez's growth last year “was balanced across developed and emerging markets, with strong performance in all regions,” CEO Dirk van de Put said in a statement.
This year, the company continues to focus “on strong execution, supported by a significant increase in investments behind our brands, capabilities and talent,” the executive said.
“We remain confident that we are well positioned to deliver sustainable topline and revenue growth in the years ahead,” the CEO said.
Ahead of Tuesday's earnings, analysts at Jefferies said tracked sales in Europe looked strong, and retail sales in North America hinted that Mondelez remained “among the best performers in the value food space.”
Jefferies has a buy rating on Mondelez shares and a price target of $85, which represents an upside of about 11% from Tuesday's prices.
Mondelez shares fell 4% in the extended session Tuesday, after ending the regular trading day up 0.8%. The stock has risen 17% over the past 12 months, compared with a gain of about 23% for the S&P 500 SPX..
