(Reuters) -Cadbury-parent Mondelez International forecast a bigger-than-estimated drop in its annual profit on Tuesday, signaling pressures from high input costs and soft demand for its confectionery, including chocolates and biscuits.
Shares of the Chicago-based company fell nearly 4% after the bell. They were down nearly 18% in 2024.
Prices of cocoa — a key ingredient in chocolate — have increased relentlessly over the past year, forcing companies such as Mondelez to hike prices of their products.
That has pushed budget-strained consumers, who were already grappling with a cost-of-living crisis, toward cheaper alternatives.
Mondelez expects its 2025 profit to fall 10% on an adjusted basis, compared with analysts’ average estimate of a 6.7% decline, according to data compiled by LSEG.
“This outlook does not reflect any imposition of import tariffs by the U.S. and potential retaliatory actions taken by other countries, as the tariff and trade environment is uncertain and rapidly evolving at this time,” the company said in a statement.
The company reported net revenue of $9.60 billion for the quarter ended Dec. 31, compared with the estimates of $9.64 billion.
On an adjusted basis, it earned 65 cents per share, below the estimates of 66 cents per share.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)
