Mondelez International dips after warning on high inflation impact
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Mondelez International (NASDAQ:MDLZ) reports organic sales were up 8.6% in Q1.
Organic sales up across the North America (+8.0%), Latin America (+25.7%), AMEA (+8.9%), and Europe (+3.1%) regions.
Volume and pricing both drove the organic revenue growth during the quarter.
Gross profit margin fell 80 basis points to 38.8% due to higher raw material and transportation costs and unfavorable mix, partially offset by pricing, productivity and volume leverage.
Operating margin was 17.7% of sales vs. 17.9% a year ago. Input cost inflation and unfavorable mix were mostly offset by pricing and SG&A leverage.
Looking ahead, Mondelez expects organic sales growth of +4% and adjusted EPS growth in a mid to high single-digit rate. The updated guidance reflects expectations for continued top-line growth, higher cost of goods sold inflation, the timing effect of additional pricing actions and the impact of the war in Ukraine.
CEO Dirk Van de Put: "Demand remains strong across both developed and emerging markets, with all our regions posting growth. We expect elevated levels of input cost inflation to continue through the remainder of the year, and we will continue to take necessary actions to offset this dynamic - including a broader revenue growth management agenda, ongoing cost discipline, and further simplification within our business. We remain confident in our strategy and ability to create long-term value, while recognizing the need to stay agile to navigate the dynamic economic and geopolitical environment."
Shares of Mondelez International (MDLZ) fell 0.52% in after-hours trading to $63.71 after shedding 2.65% during the regular session.
The Seeking Alpha Quant Rating on MDLZ flipped to Buy from Hold on March 25.