Is Mondelez’s growth strategy working?

Increased third quarter sales at Mondelez International is proof that its growth strategy is working, according to the company’s chairman and chief executive Dirk Van de Put. Sales in the quarter were $6.36 billion, up 1.1 per cent. Organic sales increased by 4.2 per cent.

“Our strategy to invest more in our growth initiatives is paying off, resulting in solid operating income growth,” Van de Put explained during a press conference. Mondelez has now increased its full year organic net revenue growth expectation to 3.5 per cent.

Both emerging and developed markets performed well. “In China, we achieved new distribution milestones this quarter,” said Van de Put. “We reached 1.5m outlets with our biscuit products and one million outlets for our gum.”

Meanwhile, in Europe Mondelez recorded a 5 per cent growth in sales. “The UK was a standout with double-digit revenue growth in the quarter,” said Luca Zaramella, chief financial officer at Mondelez. “Germany, Russia and the rest of Eastern Europe also posted strong results.”

Mondelez emphasised growth in its biscuits business – Oreo, Ritz and belVita all delivered strong results. The company has also highlighted the importance of its local brands. For example, the Jubilee biscuit brand in Russia, the Prince Polo brand in Poland and Biskuat in Indonesia. “All of these are performing well, thanks to renewed investment and focus,” Van de Put explained.