Oreo and Cadbury owner Mondelez has raised its annual sales forecast after stronger demand and price increases helped its second-quarter revenue beat expectations.

Net revenue rose 4.1 per cent to £7.03bn, ahead of analyst forecasts of £6.91bn.

Organic sales increased 2.2 per cent, with pricing adding 1.5 per cent and volumes and product mix contributing 0.7 per cent.

Shares in the snacking giant, which also owns Ritz, Toblerone, Milka and Clif Bar, gained almost two per cent in after-hours trading.

North American demand strengthens, Europe remains under pressure

Organic revenue in North America rose 3.4 per cent as consumers continued buying Mondelez products despite earlier price increases.

Pricing and product mix contributed 2.2 per cent, while volumes added one-point-two points.

Mondelez said consumer confidence had improved from recent lows, although higher energy costs continued to squeeze household budgets.

The business is responding to changing shopping habits by expanding smaller packs, value formats and premium lines. It has also extended its zero-sugar and gluten-free Oreo ranges.

Latin America delivered the strongest regional growth, with organic sales up 8.4 per cent, largely driven by higher prices.

Revenue across Asia, the Middle East and Africa increased 7.1 per cent, supported by stronger volumes and product mix.

However, European organic sales fell 3.5 per cent as both pricing and volumes declined.

Chief executive Dirk Van de Put said the company was beginning to see an improvement in its European market-share performance.

Costs weigh on profit

Adjusted gross profit increased 4.9 per cent to £2.39bn, while gross margin edged up to 34 per cent.

However, adjusted operating profit fell 4.8 per cent to £916m as Mondelez increased investment behind its brands.

Adjusted earnings reached £0.55 per share, five cents ahead of analyst expectations.

The group generated £976m in operating cash flow during the first half and returned £1.13bn to shareholders through dividends and share buybacks.

Mondelez now expects organic revenue to grow by at least two per cent in 2026, compared with its previous forecast of between flat and two per cent.

Its earnings guidance remains unchanged, with adjusted profit per share forecast to range from flat to five per cent growth.

The company said it would continue investing in product innovation and wider distribution while managing volatile commodity and geopolitical costs.

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