By Elias Schisgall
Mondelez International reported higher profit and revenue in the first quarter, with growth in developing markets offsetting weakness in regions such as North America and Europe.
U.S. consumer confidence is "quite low" and could diminish further as the war in Iran continues, Chief Executive Officer Dirk Van de Put said in an analyst call Tuesday.
"The consumer remains very concerned about affordability, economic outlook and job security," Van de Put said.
He said the company expects to see gradual improvements in its North American business as Mondelez looks to reinvest in its brands and hit optimal price points.
Sales in North America lagged in the latest quarter, rising 0.5%.
In Europe, overall sales rose 9%, while organic revenue, which strips out impacts from acquisitions, divestitures, and currency-related items, fell 0.6%, which Van de Put attributed to declining volumes from cocoa prices.
For now, the war hasn't substantially changed buying patterns in Europe, Van de Put said.
"We don't see anything in the consumer that would be something that preoccupies us in their sales or in their buying patterns," he said. "But we know from the fact that the Middle East conflict will affect energy prices, which are very sensitive in Europe."
In developing markets, Mondelez said that organic revenue rose 6.3%, compared with 0.8% in developed markets.
The food company, whose brands include Oreo and Cadbury, on Tuesday logged a profit of $560 million, or 44 cents a share, compared with $402 million, or 31 cents a share, a year earlier.
Stripping out certain one-time items, the company posted adjusted earnings of 67 cents a share, ahead of analysts' estimates of 61 cents a share, according to FactSet.
Adjusted earnings fell 15% year-over-year, impacted by the phasing of cocoa costs, the company said, adding that cocoa costs are beginning to gradually normalize.
Revenue rose to $10.08 billion, up from $9.31 billion a year prior. Analysts polled by FactSet were expecting $9.75 billion in revenue.
Mondelez's fastest growing region was Asia, the Middle East, and Africa, where revenue rose 14% year-over-year. Revenue from Latin America grew 12%, while European revenue grew 9%. Revenue in North America ticked up 0.5%.
"These results reflect strong execution of our consumer-centric strategy supported by increased investments behind our brands and growth platforms despite ongoing macro volatility,"Van de Put said in a press release.
The company reaffirmed its outlook of organic net revenue growth in the range of flat to 2% this year, with adjusted earnings per share expected to grow in a range of flat to 5% on a constant currency basis.
Free cash flow this year is expected to be around $3 billion, the company said.
The company said its outlook doesn't reflect any potential tariff changes to United States-Mexico-Canada Agreement-compliant trade, adding that the forecast "is provided in the context of greater than usual volatility, including geopolitical, trade and regulatory uncertainty and commodity prices."
Shares of Mondelez were up 2.2% to $59.85 in after-hours trading Tuesday. The stock closed up 2% at $58.55, up 8.8% this year.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
April 28, 2026 18:00 ET (22:00 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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