HomeMost PopularInvestingMondelez International (MDLZ) Outperforms Industry with Resilient Growth

Mondelez International (MDLZ) Outperforms Industry with Resilient Growth

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Mondelez International, Inc. (MDLZ) has demonstrated strong growth despite facing cost challenges. Through strategic acquisitions, effective pricing strategies, and a focus on core product categories, this company has achieved success. While the industry and the consumer staples sector have faced declines, MDLZ has seen a 9% increase in share value. Let’s take a closer look at some of the key factors fueling MDLZ’s growth.

Expansion through Acquisitions

Mondelez International’s growth has been driven by a series of strategic acquisitions. The recent acquisition of Ricolino is projected to double the size of MDLZ’s Mexican operations. The addition of Clif Bar has also strengthened the company’s market presence. Other acquisitions, such as Chipita S.A. and Grenade, have diversified Mondelez’s portfolio and expanded its distribution capabilities.

Focus on Core Product Categories

Mondelez’s emphasis on core product categories, particularly chocolates and biscuits, has been a catalyst for growth. As consumers increasingly opt for snacks over traditional meals, these enduring categories have experienced double-digit growth. The company expects to maintain momentum in these categories throughout 2023.

Addressing Cost Challenges

While cost inflation has posed challenges, Mondelez has implemented proactive pricing strategies to counter these issues. Despite increased raw material and transportation costs, the company achieved solid organic net revenue growth in the second quarter of 2023.

Positive Outlook for Growth

Mondelez International is well-positioned for continued growth due to its expansion initiatives, commitment to core categories, and cost-control measures. The company anticipates organic net revenue growth of over 12% in 2023, as well as double-digit adjusted earnings per share (EPS) growth on a constant-currency basis.

Other Solid Consumer Staple Investments

Inter Parfums (IPAR), Flowers Foods (FLO), and Helen of Troy (HELE) are also promising investments in the consumer staple sector. IPAR has a Zacks Rank #1 and an expected EPS growth rate of 15% for three to five years. FLO has a Zacks Rank #2 and a significant earnings surprise average. HELE, also a Zacks Rank #2, has a steady EPS growth rate and a positive earnings surprise average.

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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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