USA: Mondelez International posts fall in revenue and operating income in 2014
Mondelez International, the company behind brands including Cadbury, Oreo, Lu and Philadelphia, has reported that it generated $34.2 billion of revenue in 2014, including a negative 5.1 percentage point impact from currency, representing a drop of 3.0% on the previous year.
Operating income meanwhile fell 18.4% to $3.2 billion, including a negative 12.4 percentage point impact from restructuring costs and a negative 8.7 percentage point impact from cycling the prior-year reversal of an indemnity accrual related to the 2010 acquisition of Cadbury, the company said.
Organic net revenue, however, increased 2.4 %, a result that Mondelez attributed to "strong pricing performance". At the country level, organic net revenue from emerging markets was up 7.0%, while developed markets decreased 0.5 %, the company added.
Commenting on the results, Mondelez Chairman and CEO Irene Rosenfeld said: "In 2014, we delivered strong earnings growth, margin expansion and cash flow in a challenging consumer and retail environment by driving record net productivity and aggressively reducing overheads. At the same time, we delivered organic net revenue growth in line with our expectations as we raised prices to recover higher input costs, protect profitability and ensure the health of our franchises".
Source: Mondelez International