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Mondelez Records Impressive First Quarter Growth

American confectionery, food, and beverage company giant, Mondelez has released its first-quarter performance report, recording a “delivered strong top-line results, driven by higher pricing and strong volume growth”.

Our chocolate and biscuit businesses continue to power our virtuous cycle of attractive revenue growth, strong profitability and robust cash flow,” said Dirk Van de Put, Chairman and Chief Executive Officer in a statement posted on the company’s website.

The results show net revenues increased +7.3% driven by Organic Net Revenue growth of +8.6% while the cash provided by operating activities peaked at $1.1 billion, an increase of +$0.2 billion versus the prior year.

According to the 2022 first-quarter report, the return of capital to shareholders was $1.2 billion

During the said period, announced an agreement to acquire Mexico’s leading confectionery company, Ricolino, with iconic brands and strong distribution capabilities to double the size of its operations in Mexico.

The same period saw the appointment of Mariano Lozano to the role of Executive Vice President and President responsible for Latin America.

Company officials are upbeat about the gains. Demand remains strong across both developed and emerging markets, with all our regions posting growth, the 2022 first-quarter report said, though it is expecting an elevated level of input cost inflation to continue through the remainder of the year.

Focusing on the 2022 Outlook, the company says it is unable to predict some elements that are included in reported GAAP results, including the impact of foreign exchange.

The company is updating its fiscal 2022 outlook to reflect 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, the results said.

Headquartered in Chicago, USA, Mondelez is multinational confectionery, food, holding and beverage and snack food company with annual revenue of about $26 billion and operates in approximately 160 countries.

In Ghana, the company has been implementing the Cocoa Life Program, a sustainability programme to assist cocoa-growing communities to strengthen their capacities to determine and achieve their own long-term goals, economic development and prosperity.

For the past 10 years, Cocoa Life has been building partnerships with various stakeholders, including the Ghana Cocoa Board, NGOs and other national institutions, to strategise on ways to improve the industry and farmers, who are the main collaborators.

In June 2018, Mondelēz International signed a Memorandum of Understanding with the Forestry Commission of Ghana, Ghana Cocoa Board and the United Nations Development Programme (UNDP), reinforcing its commitment to reduce emissions in its cocoa supply chain across Ghana.

Through Cocoa Life, Mondelēz International’s signature sustainable cocoa sourcing program, the company has been playing a lead role in implementing projects to deliver the Ghana Cocoa Forest REDD+ Program (GCFRP) which aims at tackling deforestation and forest degradation.

Source Cocoa Post
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