(AP) Mondelez reported a first-quarter profit on Tuesday that met Wall Street expectations, as the maker of Oreo cookies raised prices and sold more of its snacks in emerging markets.
The company, which also makes Cadbury chocolate and Trident gum, said it still expects revenue growth for the year to be on the low end of its forecast of 5 to 7 percent, with a decline in coffee prices and ongoing weakness in the gum category weighing on results. But it raised its outlook for operating earnings, citing tax items.
Mondelez split from Kraft Foods Group Inc. last fall so that each of the companies could concentrate on a more focused stable of brands. Kraft held onto North American grocery staples such as Oscar Mayer, Jell-O and Maxwell House. Mondelez, based in Deerfield, Ill., took global snacks that are expected to grow at faster rate.
But Mondelez has stumbled in its first few quarters as an independent company, with sales growth falling short of its own forecast. In the latest quarter, organic sales which exclude the impact of currency exchange rates and acquisitions rose 3.8 percent. That was short of the 5 percent to 7 percent growth range the company has predicted for long-term growth.
For the three months ended March 31, Mondelez International Inc. earned $568 million, or 32 cents per share. That's compared with $813 million, or 46 cents per share, a year ago when it was still combined with Kraft Foods Group Inc.
Operating earnings were 34 cents per share, in line with expectations, according to FactSet.
Net revenue rose 1 percent to $8.74 billion, above the $8.68 billion Wall Street expected.
Shares of Mondelez edged up 9 cents to $31.50 in after-hours trading.