February 1, 2023
Mondelez delivered a record year in FY2022, in terms of both size of the company and in profit dollar growth, which came in at US$1.4B.
- Biscuits grew 11.7% for the year and 18% for Q4 amid significant volume growth.
- Oreo, Ritz, Chips Ahoy!, Tate's, Give & Go and Club Social were among brands that performed "very well," with Oreo surpassing US$4B in global net revenue.
- Chocolate grew more than 10% for both the year and quarter with significant growth across both developed and emerging markets.
- Volume mix was virtually flat in Q4 due to customer disruption in Europe.
- Emerging markets posted "exceptional" double-digit growth for the year and the quarter.
- Chocolate held or gained share in 50% of company's revenue base.
- This number includes a strong Christmas season with gains in several key countries, but also reflects customer disruption in Europe.
- Gum and Candy grew 25% for the year and the quarter.
- Brazil, Mexico and the Western Andean area, all performed well.
- Acquisitions of Chipita, Cliff Bar and Ricolino add nearly US$3B in revenues and are all growing high single or double digits.
- Clif Bar expands global snack bar business to more than US$1B.
- Ricolino doubles the size of company's business and more than triples routes to market in Mexico.
- Mondelez took steps to advance sustainable sourcing for its "two most critical ingredients," cocoa and wheat.
- Added US$600M commitment to cocoa sourcing program Cocoa Life, bringing company's total investment to US$1B.
- Will launch in Q1 an updated vision for its HARMONY Wheat program, focused on sustainably sourcing wheat across the European Union.
- Company continued advancing its "light and right" packaging strategy.
- Cadbury Dairy Milk chocolate in the United Kingdom, Australia and New Zealand now are wrapped in packaging with more than 30% recycled content.
- Company took steps to address climate change.
- Expanded use of renewable energy to reduce scope 1 and 2 greenhouse emissions.
- About 80% of farms in company's Cocoa Life program in West Africa achieved near to no deforestation, reducing Scope 3 emissions.
- Since 2018, we have reduced our CO2 emissions by more than 20%.
- CEO Dirk Van de Put says company remains focused on advancing diversity, equity and inclusion because "we firmly believe that diverse perspectives and viewpoints make our company stronger, while helping us stay closer to our customers and consumers."
- Company increased gender and racial diversity of its Board of Directors with new appointments.
Mondelez plans to continue to "doubling down" on the chocolate, biscuits and baked snacks categories by investing in iconic brands, focusing on operational execution and cost discipline, and empowering its workers.
- Core categories of chocolate and biscuits remain "attractive and durable" in both developed and emerging markets.
- Company is accelerating its focus on these core categories because they have "attractive growth and profitability characteristics" and still "significant headroom in terms of penetration and per capita consumption.
- Company's long-term vision is to generate 90% of revenue through these two core categories.
- Company will also expand its presence in high-growth channels, segments and price tiers.
- Silk premium chocolate doubled its prior year penetration in India.
- In emerging markets, company added more than 400,000 additional outlets.
- Halls has been performing well, but company still intends to divest it over time in a way that maximizes value.
- Company expects China to continue with a high single-digit to double-digit growth for next year amid improving COVID situation and lifting of travel restrictions.
- Supply situation is "good," with some increased costs.
- Company expects gum business to come back and to grow market share in biscuits.