(Reuters) -Cadbury-parent Mondelez Worldwide forecast a bigger-than-estimated drop in its annual revenue on Tuesday, signaling pressures from excessive enter prices and mushy demand for its confectionery, together with candies and biscuits.
Shares of the Chicago-based firm fell almost 4% after the bell. They have been down almost 18% in 2024.
Costs of cocoa — a key ingredient in chocolate — have elevated relentlessly over the previous 12 months, forcing corporations similar to Mondelez to hike costs of their merchandise.
That has pushed budget-strained shoppers, who have been already grappling with a cost-of-living disaster, towards cheaper options.
Mondelez expects its 2025 revenue to fall 10% on an adjusted foundation, in contrast with analysts’ common estimate of a 6.7% decline, in response to information compiled by LSEG.
“This outlook doesn’t mirror any imposition of import tariffs by the U.S. and potential retaliatory actions taken by different nations, because the tariff and commerce surroundings is unsure and quickly evolving right now,” the corporate stated in an announcement.
The corporate reported web income of $9.60 billion for the quarter ended Dec. 31, in contrast with the estimates of $9.64 billion.
On an adjusted foundation, it earned 65 cents per share, beneath the estimates of 66 cents per share.
(Reporting by Neil J Kanatt in Bengaluru; Enhancing by Shilpi Majumdar)
