Mondelez’ exec ‘bullish about our future’
In addressing analysts attending the Consumer Analyst Group of New York (CAFNY) conference yesterday in Boca Raton, Fla., Mondelez International’s chairman and ceo Irene Rosenfeld provided a rosy outlook for the company’s performance this year.
“I’m bullish about our future,” asserted the company’s top executive. “Although our top-line growth was disappointing in the back half last year, the quality of underlying revenue and earnings growth provides strong momentum as we enter 2013.”
Rosenfeld’s confidence stems from Mondelez International’s bevy of brands as well as continuing growth in developing markets where the company generates more than 40 percent of its sales.
"We have an advantaged geographic footprint, an enviable portfolio of iconic brands and innovation platforms, a virtuous cycle driving strong underlying operating momentum and a long runway of growth opportunities," Rosenfeld said. "As a result, we're well-positioned for sustainable, profitable growth, and I'm confident in our ability to deliver top-tier financial results."
She emphasized the company’s leading positions (either No. 1 or 2) in key fast-growth snack categories such as biscuits, chocolate, gum, candy, coffee and powdered beverages, all of which have grown between 5 and 10 percent since 2009.
One of the reasons for the company’s “long runway for growth” involves per capita income growth in developing countries, Rosenfeld added. Another positive for the company involves its ability to leverage “power brands,” such as Cadbury, Milka, Ore, Trident, Lu, Sour Patch and others, in these markets, which accounted for $1 billion in revenues in 2012, reflecting a 20 percent sales gain.
She singled out the company’s rollout of Cadbury Bubbly aerated chocolate in 2012 as an example of an innovation platform that will continue to drive growth. (It since has debuted under the Milka and Lacta brands).
Rosenfeld asserted that a 5 to7 percent organic growth target is achievable, with chocolate and biscuits pegged at mid-to-high, single-digit growth and gum, candy and remaining categories accounting for low-to-mid, single-digit growth.