Mondelez International reports Q2 profit and revenue growth amid strong global demand for chocolates, biscuits
Global pricing strategies and resilient international demand drive Mondelez’s second-quarter growth despite volume pressures in key markets.
USA – Mondelez International exceeded Wall Street expectations for both revenue and earnings in the second quarter of 2025, supported by continued consumer demand for its premium chocolates and biscuits across international markets.
The company posted a 7.7% rise in net revenue to US$8.98 billion for the quarter ended June 30, surpassing analysts’ average forecast of US$8.84 billion, based on LSEG data. On an adjusted basis, Mondelez earned 73 cents per share, compared to analysts’ estimate of 68 cents.
Gross profit increased 5% to US$2.9 billion, primarily attributed to a decline in adjusted gross profit margin. This was partially offset by negative year-over-year movements in mark-to-market impacts from commodity and currency derivatives.
Operating income surged 37.1% to US$1.1 billion, mainly due to favourable year-over-year changes in derivative impacts, reduced acquisition-related expenses, and the absence of prior-year costs tied to the completed Simplify to Grow Program.
In Europe, a key revenue region for Mondelez, volumes declined by 1.3 percentage points, a narrower drop compared to the 3.1-point decline in the same quarter last year.
Despite the volume dip, revenue in the region surged 18.7%, fueled by a 13.8 percentage point increase in pricing. North American volumes fell by 2.4 points, widening from a 1.2-point drop a year earlier.
Company Chairman and CEO Dirk Van de Put attributed the strong second-quarter performance to successful pricing strategies and consistent growth across major geographies.
He acknowledged macroeconomic pressures, especially in the U.S. market, where consumers are increasingly shifting to lower-cost private-label alternatives.
To address this trend, Mondelez plans to roll out value-focused pricing packs in North America.
Looking ahead, Mondelez maintained its organic revenue growth to be approximately 5% and adjusted EPS to decline approximately 10% on a constant currency basis due to “unprecedented” cocoa cost inflation. The company also expects 2025 free cash flow of +$3 billion.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
