Cadbury owner Mondelēz’s profits exceeded expectations in 2023, however it expects price hikes to take its toll in the first half of this year.
The firm, which also owns Ritz Crackers and Toblerone, warned of “customer disruption during the first quarter and potentially into the second quarter” in Europe, due to still-high inflation, Reuters reported.
Operating profits at the food giant, which also owns Ritz Crackers and Toblerone, surged 55% over the year to £4.34bn ($5.35bn) on the back of a 14.4% sales jump.
However, sales growth slowed to 7.1% in the fourth quarter, with volumes dipping 0.4 percentage points as price hikes hit sales from squeezed consumers.
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Volumes plunged 5.5 percentage points in North America, however remained stronger in Europe, where they rose 3.3 percentage points, despite price rises.
Mondelēz chairman and chief executive Dirk Van de Put said: “As we enter 2024, we continue focusing on strong execution, supported by a significant increase in investments behind our brands, capabilities, and talent. We remain confident that we are well positioned for sustainable top- and bottom-line growth in the years ahead.”
Last week Cadbury confirmed it would be increasing its prices amid “considerable cost challenges” as the confectionery giant admitted it was a “last resort”.
