Mondelēz International Steers Clear of Market Turbulence with Resilient Consumer Confidence
Mondelēz International, the multinational confectionery and food company, has reported a solid performance in its third quarter 2026 earnings call. Despite market turbulence and inflation concerns, the company's Chairman and CEO, Dirk Van de Put, expressed confidence in the consumer in emerging markets.
Speaking during the Q&A session, Van de Put noted that India is experiencing positive sentiment, while Latin America, specifically Mexico and Brazil, remains solid. However, China's consumer confidence is softer due to ongoing economic challenges. Despite this, Mondelēz International has seen strong volume growth in its major emerging markets, driven by snacking categories such as biscuits and chocolate. The company has also expanded its distribution channels, adding 130,000 outlets in India year-to-date.
In Europe, consumer confidence is generally stable but cautious due to inflation concerns. However, Mondelēz International reported positive volume mix growth of 1.6 percentage points, with a strong focus on execution and activations. The company's share dynamics are improving, despite unseasonably hot weather having a 1% negative effect on growth.
North America, meanwhile, continues to experience soft consumer confidence due to energy and fuel price concerns. However, Mondelēz International remains optimistic about its results in the region, driven by promo discipline and growing more significantly in under-indexed channels.
The company has reiterated its forecast for strong EPS growth in 2027, with Chief Financial Officer Amit Banati highlighting the importance of maintaining positive volume momentum. He noted that Mondelēz International is focused on driving top-line growth through a combination of innovation, execution, and activations.
As the global economy continues to navigate uncertainty, Mondelēz International's resilient consumer confidence in emerging markets provides a silver lining for investors. The company's commitment to executing its strategy and driving growth across regions will be crucial in delivering strong EPS growth in 2027."
