February 7, 2017 / 9:15 PM / 4 years ago

Oreo maker Mondelez's sales, profit miss estimates

(Reuters) - Mondelez International Inc (MDLZ.O), the maker of Oreo cookies and Cadbury chocolates, reported lower-than-expected holiday-quarter sales and profit due to a strong dollar that eroded the value of sales outside the United States.

FILE PHOTO - The logo of Mondelez International is pictured at the company's building in Zurich November 14, 2012. REUTERS/Michael Buholzer/File Photo

The company, which gets more than 75 percent of its sales outside the United States, also said that it expects its 2017 revenue growth to be hit by 1 percent and adjusted earnings to be down by 3 cents per share due to the strong dollar.

The average value of the dollar rose 2.3 percent against a basket of currencies in the fourth quarter, from a year earlier.

Mondelez said its fourth-quarter sales in Europe, its largest market, was down 4.7 percent. However, they were up marginally on a constant currency basis.

The world’s second-largest confectionary company last month raised prices for some of its products as it grapples with higher commodity costs.

The Deerfield, Illinois-based company’s net revenue fell 8.1 percent to $6.77 billion in the quarter.

Analysts on average had expected revenue of $6.89 billion, according to Thomson Reuters I/B/E/S.

Net income attributable to Mondelez was $93 million, or 6 cents per share, in the quarter ended Dec. 31, compared with a loss of $729 million, or 45 cents per share, a year earlier.

Excluding items, Mondelez earned 47 cents per share, missing the average analyst estimate by a cent.

The company’s shares were down slightly at $43.93 in extended trading on Tuesday.

Reporting by Gayathree Ganesan in Bengaluru; Editing by Maju Samuel

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below