The American manufacturer of Oreo and Toblerone cookies recorded a 14% jump in revenue in the fourth quarter; The CEO: “No employees died”
The Chicago-based maker of Oreo cookies, Sour Patch candies and Toblerones said it raised prices last year due to higher energy, transportation and labor costs. According to the company, in December it raised prices in the US and is now preparing for similar moves in Europe.
Mondelez CEO Dirk van de Putt said that if the company’s expenses remain stable, as has been evident over the past two months, it is not expected to continue raising prices in the US. “We hope the costs will start to come down in the second half of the year,” Van de Putt was quoted as saying in the Wall Street Journal.
According to the company’s latest reports, consumers bought more sweets in all global markets, with the exception of Europe, where inflation jumped sharply mainly due to rising energy prices. Although consumers are buying cheaper food brands and looking for deals on daily staples such as breads and cereals, In the sweets and snacks sector, they are willing to spend more, according to senior officials in the retail sector. According to Van de Put, the increase in sales showed that in the eyes of consumers, snacks and sweets are an attainable indulgence.
An increase was recorded in quarterly sales also due to the acquisition of companies by Mondelez, including the health snack manufacturer Cliff Bar, the Ricolino candy company and the bakery manufacturer Chipita Global.
In December, the company reported that it intends to sell its chewing gum brands, including Trident and Dentin, in the developing markets, to Perpeti Van Mele for $1.35 billion, as part of its focus on chocolate candies, cookies and other snacks.
The CEO of Mondelez also stated that the manufacturer has no intentions of laying off workers, and that the workforce situation has improved. For 2023, the company expects a 5-7% increase in net income.