Global food manufacturer Mondelēz International reported its results for Q1 2026, finding net revenues had increased by 8.2% for the three months ended 31st March.
Gross profit increased by $373 million, while gross profit margin increased 170 basis points on the year to 27.8%. Mondelēz said this was primarily driven by a “favourable” year-on-year change in mark-to-market impacts from commodity and foreign currency derivatives, partially offset by a decrease in adjusted gross profit margin.
Adjusted gross profit decreased by $168 million at constant currency and adjusted gross profit margin decreased 270 basis points to 30.7%. This was reportedly driven by higher input cost inflation and “unfavourable” volume/mix, partially offset by higher pricing and lower manufacturing costs driven by productivity.
Operating income increased by $128 million over the three months, with operating income margin up 70 basis points to reach 8%. However, adjusted operating income decreased by $261 million and adjusted operating income margin decreased 310 basis points to 11.7%. Mondelēz said this was due to higher input costs, unfavourable volume/mix, higher advertising and consumer promotion costs and higher expenses.
“These results reflect strong execution of our consumer-centric strategy supported by increased investments behind our brands and growth platforms despite ongoing macro volatility.”
Dirk Van de Put, chair and chief executive officer of Mondelēz International, commented: “We posted solid first quarter results led by strong top-line growth in our Emerging Markets while Developed Market growth showed signs of improvement. These results reflect strong execution of our consumer-centric strategy supported by increased investments behind our brands and growth platforms despite ongoing macro volatility.
“The fundamentals of our business remain strong, the capabilities of our people are unmatched, and we continue to boldly invest behind our long-term growth opportunities to enable sustained performance for years to come.”
