Dive Brief:
- Mondelez International said profit fell 11% in its third quarter, as the slumping economy in Europe hurt sales.
- The maker of Oreo, Cadbury, Trident, and a slew of other brands said it doesn't expect its problems to last. Mondelez boosted its forecast for the full year, which sent shares soaring by 6%.
- Sales growth fell to 3.9% from 4.7% a year earlier.
Dive Insight:
If profit is falling, sales growth is contracting, and Europe is stagnating, just what could Mondelez be so optimistic about that it would increase its forecast? Well, it isn't cookies, candy, and gum.
It's cost-cutting and reorganization. But as we said in its last quarter, "There are only so many units that can be spun, businesses that can be sold, and costs that can be cut. Mondelez needs to find organic growth." And that growth remained elusive in its third quarter.