Price and NPD drive Mondelēz revenues up but volume and profit slide

Mondelēz International outlines year ahead in Q1 2025 update.

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Mondelēz International has beaten expectations in its Q1 report, but volumes and profits are downMondelēz International is celebrating strong organic revenues of +3.1% for the first quarter of 2025, but extreme cocoa cost increases and myriad other challenges have gnawed profits away.

Reported net revenues remained flat at 0.2%, growing earnings to $9.31bn for the period. However, much of the gains were driven by Europe as well as the Asia, Middle East and Africa markets, which both saw net revenue gains.

Latin America, North America and even emerging markets showed revenues down, by as much as 8.8% in the former.

The business has been able to drive value sales up on the back of cocoa price hikes, with chocolate net revenue growing 10.1% for the period against volumes down 5.7%.

Cocoa pricing optimism Cocoa market optimism is beginning to blossom as market price reductions play with weaker demand, showing potential for more reasonable pricing in the future, according to CFO Luca Zaramella.

The futures market also remains inverted, giving more hope for reductions.

Biscuits and baked snack revenues remained flat at +0.3 against flat volumes of -1%, though category success was addled by soft US consumption and retailer destocking.

Gum and candy values were also flat at +1% against volumes down 4.2%.

“We delivered solid Q1 2025 results in line with our expectations, driven by strong execution of our growth strategy while navigating unprecedented cocoa cost inflation,” said chair and CEO Dirk Van de Put.

The business’s first quarter pricing and its global brand strength provide Mondelēz with confidence in its full-year outlook, he adds.

“We remain committed to delivering against our strategic agenda and staying agile in this volatile operating environment to drive sustainable shareholder value,” Van de Put says.

Mondelēz committed to strategyThe business remains committed to its annual forecast of up to 5% organic net revenue growth as well as a 10% drop in adjusted net profit.

First quarter gross profits sank $2.3bn and gross profit margin by 2,5000 basis points to 26.1%, driven in the main by commodity price rises.

Its financial outlook remains realistic despite continuing commodity issues and the current geopolitical problems. However, Mondelēz International’s outlook does not reflect potential tariff changes to the US-Mexico-Canada Agreement.

Mondelēz will focus on brand investments through a series of new launches, as well as stronger marketing and collaborations.

Van de Put also continues to target expanded distribution, with an additional 100 stores in emerging markets secured in Q1.