Mondelez targets emerging markets growth

Mondelez International is reinvesting some of its profits in emerging markets, which account for nearly 40 per cent of its revenues, as it seeks to expand in countries where demand for snacks is showing most growth.“We are a growth company, and we have a very strong footprint in emerging markets,” said Irene Rosenfeld, chief executive of Mondelez, the snacks group spun out of Kraft Foods. “The race is clearly on for us and our competitors to fortify and expand our positions ... these investments will pay off.”Ms Rosenfeld was speaking after Mondelez, which includes the Oreos, Trident and Cadbury brands, reported net income of $568m, or 32 cents per diluted share, during the quarter ending in March,carbon fabric down 30 per cent from the $813m,Cast iron clawfoot tubs or 46 cents per diluted share, in the previous year. Revenues rose just under 1 per cent year on year to $8.74bn from $8.67bn.Excluding special items, Mondelez reported earnings of 34 cents per share, against expectations of 34 cents on $8.68bn in revenues. 

Combined net revenues for Asia Pacific, eastern Europe, Africa, Latin America and the Middle East rose 2.5 per cent year on year. Excluding the effects of foreign currency, combined net revenues for those markets rose 8 per cent compared to Used construction machinerythe same period last year.The company raised its full-year operating earnings guidance by 3 cents to $1.55-$1.60 per share on a benefit from a tax item, and maintained its guidance for full-year organic net revenue growth at the low end of its 5-7 per cent range.Ms Rosenfeld split the companies last year and stayed on to run the larger international snacks group. Mondelez has struggled since the split, with net income falling around 30 per cent year on year in each of the two previous quarters.Recent reports that activist investors Nelson Peltz and Bill Ackman have both taken stakes in the company have raised speculation that PepsiCo could buy Mondelez, or that PepsiCo could spin off its snacks business and sell it to Mondelez.The quarter ending in March was the second full one in which Mondelez operated as an independent company. Last week the slower-growth Kraft Foods grocery business reported first-quarter net income of $456m, or 76 cents per share, down from $483m,Antique faucets or 82 cents per share, in the previous year.Mondelez shares rose 0.tyre equipments3 per cent in after-market trading to $31.50.