Mondelēz International, the parent company of Cadbury’s and Oreo, has raised its revenue forecast for the full year, after posting better than expected results, despite prices being hiked.
The FMCG giant decided to raise its prices to protect its margins from increased costs stemmed from transport, ingredients and labor.
The parent company of Oreo reported an 8% increase in organic net revenues, compared with its 4% prediction.
READ MORE: Cadbury ‘sets standard for food manufacturing’ with 17.5% pay rise
Gross profit increased $10 million (£8.3 million), while gross profit margin decreased 330 basis points to 36.3%.
Return of capital to shareholders was $2.5 billion (£2.07 billion) in the first half of the year
For 2022, the company now expects over 8% of organic net revenue growth, which reflects the strength of its first half and higher pricing related to increased input costs.
“Our second quarter and first half results were marked by strong top and bottom-line performance across all regions and categories, supporting the raising of our full-year revenue growth outlook,” CEO and chairman Dirk Van de Put said.
The news comes as Mondelēz International published its 2021 Snacking Made Right Report, which marks 10 years of its sustainability programme Cocoa Life.
The report reveals that Cocoa Life had exceeded 2022 goals by reaching almost 210,000 farmers in over 2,500 communities. Additionally, more than $400 million was invested to support farmers’ livelihoods.
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