Global snack maker Mondelez likes to call some of its best-known brands — Oreo, Chips Ahoy!, Ritz, Cadbury and more — its «Power Brands.» The company’s first quarter earnings results help to explain why: growth in the segment accounted for much of the overall revenue, which came in above Wall Street’s expectations.
Mondelez reported Tuesday afternoon that it recorded $6.4 billion in first quarter revenue, a figure that fell 0.6% on a year-over-year basis but beat the $6.37 billion analyst consensus. The company noted that on an «organic» basis — that is, excluding one-time items like acquisition costs — revenue increased by 0.6%. «Power Brands» like Oreo, Ritz and Cadbury saw their sales increase 1.6%; the growth helped offset a 6.4% decline in sales from the «non-Power Brands.»
Net earnings for the quarter came in at $630 million, a 13.7% increase that resulted in 41 cents of earnings per share. Excluding one-time items, earnings per share came in at 53 cents, three cents ahead of the Wall Street consensus.
«We had a solid start to the year despite challenging market conditions,” Irene Rosenfeld, Mondelez chairman and CEO, said in a statement Tuesday afternoon, referring back to comments she made in February about «dramatic» shifts in the food industry that are «redefining the way our consumers eat, live and shop.» But despite this volatile environment, she said Tuesday, the company was able to grow revenue on an organic basis and expand margins.
«We remain confident in and committed to our balanced strategy for both top- and bottom-line growth, continuing to focus on what we can control to deliver long-term value creation for our shareholders,» she said.
Mondelez also reiterated its full-year 2017 guidance Tuesday, saying that it continues to expect 1% organic net revenue growth and double-digit adjusted earnings per share growth.
Shares of Mondelez, which closed Tuesday trading down 0.7%, rose in the after-hours session on the solid earnings results. The stock is currently up 2.88%. Year-over-year, it’s up just 0.16%.