How Mondelēz International is Ensuring Resilience

Mondelēz International has delivered its third-quarter results for 2025, revealing solid top-line growth despite navigating the impact of record-high cocoa cost inflation.

Mondelēz, behind leading brands such as Cadbury and Oreo, is focusing on growth investments and cost efficiencies to mitigate ongoing market challenges.

CEO and Chair Dirk Van de Put says: “Although we anticipate challenging conditions to continue in some markets, we are encouraged by moderation in cocoa prices as well as promising signs for a strong cocoa crop this fall.”

Mondelēz International reports that its teams are concentrated on clear strategies for volume improvement.

Dirk adds: “Our teams are focused on executing clear plans for volume improvement increasing growth investments and creating meaningful cost efficiencies.”

Commodity and supply chain pressures

Between late 2023 and early 2025 the price of cocoa experienced a near-threefold increase.

According to The Wall Street Journal, at the end of 2024 this was a direct result of low global stocks that caused major supply deficits.

Other factors impacting the cocoa harvest include extreme and unpredictable weather patterns ranging from droughts to increased rainfall.

During the announcement of Mondelēz’s Q1 2024 results Dirk stated that the inflation did not alter the fact that its “categories and growth opportunities remain sizable". 

He added that Mondelēz was “fully covered for 2024 and well-protected heading into 2025". 

At an investor conference in September 2024, Dirk acknowledged that poor cocoa harvests in Africa had contributed to the hiked prices in 2023 and 2024 but said there was “more optimism” around higher prices in Europe.

Financial performance amid inflation

Mondelēz reported that its revenues increased by 5.9% which was resulting from organic net revenue growth of 3.4%.

This growth was led by pricing execution which was partially offset by a decline in volume. In terms of product performance organic net revenue for chocolate brands including Cadbury Milka and Toblerone grew by 8.2%. The biscuits and baked snacks division which includes belVita and Oreo saw a 1.2% growth.

Geographically, the growth presented a mixed picture across the global landscape for Mondelēz.

While Latin America saw an increase of 4.7%, Europe 5.1% and Asia Middle East and Africa 5.3%, North America reported a decrease of 0.3%. Mondelēz’s gross profit was reported as decreasing by US$387m.

This was partially offset by a favourable year-over-year change in market-to-market impacts from commodity and foreign currency derivatives and lower intangible asset impairment changes.

Updated outlook and future strategy

Mondelēz International's updated 2025 outlook now projects organic net revenue of 4% or more.

However it anticipates that adjusted earnings per share (EPS) will decline by approximately 15% on a constant currency basis. Mondelēz International also projects a free cash flow of US$3bn for 2025. In its forecast for currency translation Mondelēz International says net revenue growth would increase by approximately 0.5% and adjusted EPS by US$0.05.

Despite the challenges, Mondelēz predicts a free cash flow of US$3bn for 2025 and returned US$3.7bn to shareholders in the first nine months of the year, which could signal confidence in its long-term financial health.

Looking ahead, Dirk says: “We remain confident in our teams’ proven track record of navigating volatility as well as our strong business fundamentals which position us well for next year and beyond.”