(Reuters) -cadbury-parent Mondelez International predicted a decrease in annual profits on Tuesdays, signaling pressure due to higher costs, including a surge in cocoa prices.
Cocoa prices, the main ingredient of chocolate, have been constantly increasing over the past year, forcing companies such as Mondelez to raise product prices.
As a result, consumers who are already in a crisis of survival costs have headed to an alternative.
Mondelez, headquartered in Chicago, is expected to drop by 10%, compared to the average estimator’s average estimation of 6.7%, according to the data compiled by LSEG.
Oreo and TOBLERONE manufacturers said, “This outlook does not reflect the imposition of import tariffs in the United States and potential retaliation taken from other countries. This is because the tariff and the trade environment are now uncertain and rapidly evolving.
The amount of Mondel Les in Europe, the largest market for profit, fell in fourQ due to a gradual price increase. However, in North America, the amount increased after the price decreased by 0.9 %.
In addition to higher transportation costs, the company’s adjusted total profit margin decreased 650 times to 31.5%.
Mondelez reported $ 96 billion in net sales compared to $ 96.4 billion in estimates over three months, which ended on December 31.
On the adjusted basis, it was 65 cents per share from 66 cents per share, 66 cents per share.
(Report of Bengaluru’s NEIL J KANATT; Edit of Shilpi Majumdar)
