Mondelēz withdraws 2020 forecast yet reports quarterly improvement
Mondelēz International has reported a first quarter 2.6% rise in net revenues to $6.7 billion, though has withdrawn its forecast for the remainder of 2020 amid coronavirus-affected markets around the world.
The company said its first priority is to protect and support the safety and well-being of employees, which has included We introducing strict health and safety protocols across its facilities, adding that it is providing enhanced benefits for front-line employees.
Furthermore, the business said that it is supporting community partners advancing critical food stability and emergency relief efforts across the world with both cash donations and products, which has totalled $20 million to date.
The business said that its second priority was to support supply chain continuity, focusing on the most important products for retailers and consumers to maintain good service levels. This has involved cost discipline and protecting cash by reducing non-critical spending, as well as expanding credit facilities.
Significantly, the business added that it is accelerating a number of strategic initiatives and continuing to invest in its brands despite the trading uncertainties brought about by the ongoing global impact of coronavirus.
“We had a strong first quarter, with record market share gains, and executed very well in challenging circumstances, thanks to the dedication and commitment of our colleagues, especially those on the front line, who are working tirelessly to provide food to consumers around the world,” said Dirk Van de Put, Chairman and Chief Executive Officer.
“In the last month of the quarter, we saw a significant increase in consumer demand for our snacks in developed markets, particularly in North America, which more than offset a more challenging environment in several emerging markets.
“Our priority at this time is to protect our colleagues and maintain business continuity in service of our customers and consumers around the world. We remain confident that with our dedicated people, our portfolio of trusted global and taste-of-the-nation local brands, our strong balance sheet, access to significant liquidity and our clear strategic priorities, we have everything we need to manage through this pandemic and emerge stronger on the other side.”