Mondelēz targets growth in cakes, pastries sector

Published 18-02-2025, 07:44 pm
Mondelēz targets growth in cakes, pastries sector

CHICAGO - Mondelēz International, Inc. (NASDAQ:MDLZ), a consumer goods giant with a market capitalization of $78.67 billion, outlined its growth strategy and portfolio transformation at the 2025 Consumer Analyst Group of New York (CAGNY) Conference today, focusing on its core categories of chocolate, biscuits, and baked snacks. The company’s Chairman and CEO, Dirk Van de Put, and CFO, Luca Zaramella, discussed strategic priorities and the company’s market leadership, particularly its expansion into the cakes and pastries category. According to InvestingPro analysis, the company maintains a "GOOD" financial health score, suggesting strong operational fundamentals.

Mondelēz reported resilient growth in 2024, with a 4.3% increase in organic net revenue and a 5.1% rise in adjusted gross profit dollars, despite facing record cocoa input cost inflation. The company maintains a healthy gross profit margin of 39.12% and generates substantial EBITDA of $7.74 billion, as reported by InvestingPro. This growth reflects the continued consumer preference for the company’s well-known brands.

The company’s $2 billion cakes and pastries business, which currently holds the third-largest global market share, is poised to accelerate growth. Zaramella emphasized the company’s approach to growth through strategic acquisitions, effective integration, and increased distribution and marketing efforts.

The CAGNY presentation highlighted four key areas of Mondelēz’s strategy: maintaining a focus on sustainable growth, managing cocoa input costs, capturing a larger share of the $97 billion cakes and pastries market, and enhancing value through cash generation and disciplined capital allocation.

The company aims to derive 90% of its revenue from its core categories while exploring opportunities in adjacent markets like cakes and pastries. The presentation and materials from today’s conference will be available on the investor section of Mondelēz International’s website.

Mondelēz International, with net revenues of approximately $36.4 billion in 2024, is known for global brands such as Oreo, Ritz, and Cadbury Dairy Milk. The company is listed on the S&P 500, Nasdaq 100, and Dow Jones Sustainability Index.

This press release includes forward-looking statements about Mondelēz International’s expected performance and market position. These statements are subject to risks and uncertainties, and actual results may differ materially. The company does not undertake any obligation to update these statements, except as required by law. The information in this article is based on a press release statement from Mondelēz International.

In other recent news, Mondelez International has been the focus of several analyst adjustments. Piper Sandler cut the company’s stock target to $56, citing concerns about future cocoa costs. The firm also revised Mondelez’s 2025 earnings per share (EPS) estimate from $3.30 to $2.91 and for 2026 from $3.61 to $3.20.

Mizuho (NYSE:MFG) Securities also adjusted its outlook on Mondelez, reducing the price target to $64 while maintaining an Outperform rating. The firm revised its EPS estimates for Mondelez to $2.90 from $3.21 for 2025 and to $3.56 from $3.75 for 2026.

Additionally, DA Davidson reduced the price target for Mondelez to $68, maintaining a Buy rating on the company’s shares. The firm noted Mondelez’s strong brand equity and cost-saving measures as significant advantages that can help the company navigate market pressures.

Piper Sandler further adjusted its stance on Mondelez shares, downgrading the stock from Overweight to Neutral and reducing the price target to $63.00. The firm revised its 2025 EPS estimate for Mondelez down from $3.33 to $3.30 and its 2026 EPS forecast from $3.79 to $3.61.

Finally, UBS maintained a Neutral rating on Mondelez with a steady price target of $63.00. The firm’s forecast for the quarter is an EPS of $0.67, aligning with the consensus of estimates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.