FMCG giants Mondelēz and Coca-Cola both posted strong Q1 sales results despite lower unit volumes, as shoppers opted for more pricey confectionery and soft drinks which offset the decline.
In the first quarter of 2024, Cadbury-manufacturer Mondelēz exceeded market expectations. Goss profit hit £3.89bn ($4.75bn ) while international sales rose by 1.4% to £7.42bn ($9.29bn). However, the company saw a 2.1% decline in volume.
Its positive results have been attributed to steady demand for more pricey items across its snacking category, such as chocolates and salted crackers.
Coca-Cola said it had experienced heightened consumer demand.
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Despite a 6% rise in international gross profits to £5.658bn ($7.065bn), its net revenue grew by 3% to £8.8bn ($11.3bn), with its overall average selling price rising by 13%.
However, the company reported only a 1% rise in unit case volumes.
The results also prompted the soft drink giant to revise its annual organic sales forecast for the year to 8% to 9% from its previous projection of a 6% to 7% rise.
Both company’s chief executives praised their firm’s strong growth, as The Coca-Cola Company CEO James Quincey said: “We’re encouraged by our start to 2024, delivering another quarter of volume, topline and earnings growth amidst a dynamic backdrop.”
“We believe our global system is primed for sustained success, thanks to the right strategies, clear alignment, a powerful portfolio and strong execution.”
Mondelēz chair and chief executive officer Dirk Van de Put added: “Despite facing a challenging and dynamic operating environment, our teams remained focused and agile in executing against our long-term growth strategy.”
We continue to reinvest in our brands, drive distribution gains and capture synergies from recently acquired assets to drive sustainable long-term growth.”
