FDBusiness.com

Mondelez International Details Long-Term Growth Targets and Margin-Improvement Plans

 Breaking News
  • Coca-Cola European Partners to Remove 4,000 Tonnes of Single-use Plastic by Swapping Shrink Wrap For Cardboard in Western Europe Coca-Cola European Partners, will be replacing plastic shrink wrap with cardboard for its can multipacks across Western Europe, removing approximately 4,000 tonnes of single-use plastic per year across the region. This is the latest move in Coca-Cola’s commitment to tackle packaging waste and remove all unnecessary single-use plastic from its secondary packaging. Plastic shrink wrapping is used [...]...
  • EU Leading in Global Agri-food Trade The EU has been confirmed for yet another year in its position as the largest global exporter of agri-food products, with sales reaching €138 billion in 2018. Agriculture products represent a solid share of 7% of the value of EU total goods exported in 2018, ranking fourth after machinery, other manufactured goods and chemicals. Agriculture and [...]...
  • Is ‘Flexitarianism’ the Future? A workshop held recently at the University of Nottingham has revealed that ‘flexitarianism’ is a new and growing trend amongst British consumers. Delegates at an event that discussed plant-based diets heard how eating more plant-based products represented a sustainable future for food and drink production. Organised by the Agrifood Training Partnership (AFTP), and chaired by AFTP [...]...
  • Chivas Brothers Opens New Head Office Chivas Brothers, the Scotch whisky business of Pernod Ricard, has opened a new 27,000 sq ft head office in the centre of Glasgow. Jean-Christophe Coutures, chairman and chief executive of Chivas Brothers, says: “We need to keep moving with the times and this is the beginning of a new and exciting chapter for Chivas Brothers [...]...
  • Unilever Achieves 100% Renewable Electricity Across Five Continents Unilever has announced that its factories, offices, R&D facilities, data centres, warehouses and distribution centres across five continents are now powered by 100% renewable grid electricity. As far as possible, Unilever’s transition to renewable electricity has been delivered through supporting the development of local renewable energy markets, with 38% of its grid electricity supplied through [...]...

Mondelez International Details Long-Term Growth Targets and Margin-Improvement Plans

Mondelez International Details Long-Term Growth Targets and Margin-Improvement Plans
February 19
15:18 2014

At a recent Consumer Analyst Group of New York (CAGNY) conference, executives of Mondelez International highlighted the company’s competitive advantages, long-term growth targets and margin-improvement initiatives.

“With an unrivaled portfolio of iconic brands, leading share positions in all of our key categories and an advantaged geographic footprint, we have the best set of assets in our industry,” said Irene Rosenfeld, Chairman and CEO. “The plans we’re executing now will enable us over the long term to deliver strong top-line growth, significantly expand margins, grow Adjusted EPS double digits and continue to generate solid cash flow.  We believe these efforts will drive top-tier shareholder returns.”

The company highlighted that snacking is a $1.2 trillion market worldwide, offering attractive growth and margin prospects. 

“Historically, our snacks categories have grown at rates of around 6 percent,” Rosenfeld said. “Although categories have slowed recently, we expect snacks categories will recover, as they are well-aligned with consumer needs to fuel our bodies, treat ourselves and boost our minds.  In fact, consumers continue to move away from large meals at fixed times to more frequent and smaller snacking occasions. Snacks consumption also increases as GDP per capita rises in emerging markets like Brazil, Russia, India and China.”

In addition, snacks carry higher margins than many other food products due to low private label penetration and a large percentage of sales from immediate consumption channels.

Dave Brearton, Executive Vice President and CFO, highlighted the company’s initiatives to expand margins, including improvements to Adjusted Operating Income margin of 500 and 250 basis points in North America and Europe, respectively, by 2016.

The biggest driver behind these targets is the reinvention of the supply chain. Over the next three years, the company expects to deliver $3 billion in gross productivity savings, $1.5 billion in net productivity and $1 billion in incremental cash.

Brearton highlighted that significant progress has already been made. To date, 30 plants have been streamlined, closed or sold. At the same time, the company is building leading-edge facilities in Mexico and India and significantly expanding facilities in the Czech Republic, the UK and the US.

“Overhead savings will also be a major contributor to margin gains,” said Brearton. “We’re accelerating our cost-reduction efforts by ensuring that our overheads are ‘fit for purpose’ for the size and scope of our company and by adopting zero-based budgeting.”

Putting it all together, the company affirmed the following long-term targets:

* Organic Net Revenue growth: At or above category growth 

* Adjusted Operating Income growth: High single-digit growth at constant currency

* Adjusted EPS growth: Double-digit growth at constant currency.

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements