News: Mondelēz International reported a 2.3% increase in net revenue to US$9.97 billion in the third quarter of 2026, supported by organic net revenue growth of 2.1%, favorable currency effects and higher sales volumes. Organic growth was driven by a favorable volume/mix contribution of 1.8 percentage points and higher net pricing, which contributed 0.3 percentage points. Diluted earnings per share rose 78.9% to US$1.02, while adjusted earnings per share increased 5.5% on a constant-currency basis to US$0.78.
Profitability improved significantly, with gross margin expanding 1,260 basis points to 39.4% and operating margin rising 1,000 basis points to 17.6%. These gains were partly driven by favorable year-on-year changes in commodity and foreign currency derivative valuations. On an adjusted basis, gross margin increased 380 basis points to 34.2%, while operating margin rose 190 basis points to 13.9%, supported by lower raw material and manufacturing costs, productivity improvements, higher pricing and favorable volume/mix. However, higher selling, administrative, advertising and promotional expenses, alongside additional costs associated with geopolitical conflicts, continued to weigh on performance.
The company reaffirmed its full-year 2026 outlook, expecting organic net revenue growth of at least 2% and adjusted EPS growth ranging from flat to 5% on a constant-currency basis.
Context:
Varying Growth Outlooks: Mondelēz expects full-year 2026 organic net revenue growth of at least 2%, reflecting continued growth momentum. Across the wider chocolate confectionery market, growth expectations vary, with Lindt & Sprüngli revising its 2026 forecast to 0–2%, from an earlier estimate of 4–6%, citing softer demand in key European markets and heightened consumer price sensitivity following significant price increases. Meanwhile, Mondelēz’s latest quarterly growth was supported by both favourable volume/mix and higher pricing.
Brand Innovation and Premiumisation: Mondelēz continues to drive innovation across its chocolate and biscuit portfolios. Toblerone has been particularly active in premiumisation, with launches including Pink Crush, Biscoff and Pistachio Gelato. Meanwhile, mass-market brand Cadbury refreshed its offering through recipe variations, such as Cadbury Milkinis in India and a creamier recipe variant in Malaysia, as well as collaborations with Biscoff. In biscuits, Oreo has also introduced a range of new flavours, including Chocolate Covered Pretzel, Hotteok in collaboration with BTS, and Horchata in partnership with Selena Gomez.
Strong Brand Market Positions: Mondelēz commands strong positions across several key chocolate and biscuit markets through its established brands. Cadbury remains a formidable force in the chocolate confectionery market in countries including Australia, the UK and New Zealand, while also maintaining a strong presence in emerging markets such as Malaysia. In Sweden, Marabou remains a major chocolate brand. Meanwhile, Oreo continues to hold prominent positions in major biscuit markets, including Australia and Singapore.
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