By Martinne Geller
May 7 Mondelez International Inc posted
quarterly earnings on Tuesday that were slightly better than
expected and raised its full-year earnings forecast due to a
benefit from a tax item.
The newly independent maker of Cadbury chocolates and Oreo
cookies said net income was $568 million, or 32 cents per share,
in the first quarter. That was down from $813 million, or 46
cents per share, a year earlier, before the company separated
from Kraft Foods Group Inc.
Excluding items, earnings were 34 cents per share.
On that basis, analysts on average were expecting 33 cents
per share, according to Thomson Reuters I/B/E/S.
Revenue rose nearly 1 percent to $8.74 billion. That topped
Wall Street's estimate of $8.68 billion, the first time the
company beat revenue estimates since it became a standalone
snacks company late last year.
Still, revenue growth was below the company's long-term
target, and Chief Executive Officer Irene Rosenfeld said
Mondelez is "certainly not satisfied with that."
Mondelez is using its profits to reinvest in emerging
markets and to boost brand-building, production capacity and
"You'll begin to see the payoff of these investments more
clearly as revenue growth accelerates in the second half,"
Rosenfeld told analysts.
The performance of Mondelez is of particular interest this
quarter, given the recent revelation that Trian Fund Management
has taken stakes in Mondelez and PepsiCo Inc. The move
sparked speculation that Trian's Peltz would push for a merger
of the two, given his involvement in Kraft's purchase of Cadbury
and subsequent breakup.
Mondelez stood by its 2013 goal for revenue growth at the
low end of its long-term growth target of 5 to 7 percent, but
raised its earnings goal to $1.55 to $1.60 per share from a
prior forecast of $1.52 to $1.57 per share.
Analysts on average were expecting $1.56 per share.
The company's shares rose 17 cents, or 0.5 percent, to
$31.58 in after hours trading after closing at $31.41.