Oreo owner Mondelēz have increased prices as they experienced a sales boost in the third quarter, despite a fall in gross profits.
The US conglomerate announced revenues were up more than 8% up to September, with its ceo saying people simply “cannot live without” chocolate.
In Europe, the company saw adjusted gross profit decrease by $211 million. Despite this setback, it now expects to see more than 10% in organic net revenue growth, compared to an 8% initial outlook.
The company, which owns major confectionery brands including Diam, TUC, Dairy Milk, Ritz, Philadelphia and Maynards Bassett’s, cited higher raw material and transportation costs as a key driver in offsetting pricing.
On a post-earnings call, Mondelēz chief executive Dirk Van de Put said: “We see consumers saying that chocolate is really something they cannot live without.”
He added that “despite ongoing macro volatility” the firm is focused on “delivering on items we can control, including supporting our brands and retaining healthy volumes, while continuing to deliver strong profit dollar growth and long-term share gains.”
The news comes as Mondelēz has launched new packaging across its Cadbury Dairy Milk and Cadbury Mini Snowballs sharing bars to include 30% certified recycled plastic.
