“Our core chocolate and biscuit businesses continue to demonstrate volume and pricing resilience,” said Van de Put on the company’s Q2 2022 earnings call.
“Although we may see a more mixed consumer sentiment in the near term, given the macro environment, we expect the consumers to consume more at home and be more selective in the brands they buy,” which translates into choosing more well-known and iconic name brands, according to Van de Put.
“Importantly, we are also delivering strong volume, which is important to Mondelez. It is a proof that consumers are eating more of our products every day and an indication of sustainable long-term growth,” he added.
Organic net revenue increased by +13.1% in Q2 2022 vs. Q2 2021, building on its +8.6% growth in Q1 2022 vs. the same period last year.
Turning to the operating environment, Van de Put said the company is still grappling with cost inflation for several key business inputs including energy, transportation, packaging, wheat, dairy, and edible oils.
“Input cost inflation remains challenging. And although we may see commodity inflation beginning to ease, we expect other costs like wages to show significant inflation,” said Van de Put.
Snacking represents an affordable indulgence for many consumers
While consumers are indeed frustrated by having to spend more on food purchases, their price sensitivity hasn’t impacted the grocery category as greatly as it has for other categories, noted Van de Put, who argued the consumers are actually willing to spend more on food and beverage products such as biscuits and chocolate, viewing these items as an affordable indulgence.
