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Mondelez Confectionery Sales Down

May 10, 2013
by candyandsnacktoday

Deerfield, IL — Mondelez International Inc.’s net revenues totaled $35 billion in 2012, down 2.2 percent from 2011 and fourth quarter 2012 net revenues dropped 1.9 percent to $9.5 billion, while the company’s global gum and candy revenues declined one percent, Mondelez reports.

“The decrease [in gum and candy sales] was driven entirely by gum’s poor performance in developed markets,” CEO Irene Rosenfeld said on the company’s 2012 earnings call, adding revenue in those regions was down nearly 20 percent. She added U.S. gum and candy revenue decreased 10 percent as a result of weakness in the gum segment.

“But I assure you we're not sitting idly by and accepting these trends. We're actively testing a number of ideas to rejuvenate the category and we have begun to roll out several initiatives to stem our share decline,” Rosenfeld said. Among those ideas are adjustments to price/size schemes, advertisements that capitalize on the functionality of products, and better merchandising plans, she says.

While sales were low, the company’s operating income was up four percent to $3.6 billion in 2012 and up 16.5 percent to $1 billion in Q4.

In North America, sales decreased 1.7 percent to $1.8 billion in the last quarter of 2012, while income dropped to $228 million in 2012 from $234 million in the same quarter of 2011. North American sales for the full year increased one percent to $6.9 billion and income was up for the year from $863 million in 2011 to $873 million in 2012.

The company reaffirms its 2013 expectations to be at the low end of its long-term growth target of five to seven percent.



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