Mondelēz International reports its third quarter 2025 results
Mondelēz International today released its third quarter 2025 results, reporting net revenues increased 5.9% due to organic net revenue growth of 3.4%. However, gross profit decreased $387 million, while gross profit margin decreased 580 basis points to 26.8%. Adjusted gross profit decreased $796 million.
"We delivered solid top-line growth despite the impact of record-high cocoa cost inflation, with the third quarter representing peak costs of the year,” said Dirk Van de Put, chair and chief executive officer. “Although we anticipate challenging conditions to continue in some markets, we are encouraged by recent moderation in cocoa prices, as well as promising signs for a strong cocoa crop this fall. Our teams are focused on executing clear plans for volume improvement, significantly increasing growth investments, and driving meaningful cost efficiencies. We remain confident in our teams' proven track record of navigating volatility, as well as our strong business fundamentals, which position us well for next year and beyond."
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Traders on Wall Street were less impressed by the results, where the company’s stocks fell 3.4% according to results from the market this morning, as the company, whose brands include the popular Oreo cookies and Toblerone chocolate has struggled with the increasing cost of cocoa and inflation.
At the end of the trading day, Mondelēz International’s chief executive officer Dirk Van de Putt took questions from analysts on the financial results and the challenges the company faces going forward.
In the U.S., the company plans to focus on making improvements and finding efficiencies in its baking operations, through automation, logistics system automation and a reduction in distribution centers, with most impact of these initiatives expected by 2027.
Putt added that in the U.S. market, sales were down, largely driven by consumer concerns over the economy, resulting belt-tightening and curbing of spending.
“The consumer is very concerned in general about the economy frustrated with the pricing they're seeing and we're seeing the same behavior that we've been seeing before in the sense that they are really seeking for value. That means different things for the lower income consumers that means going to smaller packs at the right price points.”
For consumers with more disposable income, they are gravitating to bigger packs baked goods to get more value and “buying when they're on promotion,” Putt continued. “We see that the best basket size of the consumer is really not increasing over the last three years. And as you can imagine, as prices have gone up, they're being more squeezed on what they can buy within that basket. And they are tending to focus on what are the essentials and, as a consequence, snacking categories are not that essential for them, and we've seen that in our volumes. And on top of that promos are not necessarily delivering the expected ROIs.”
Going forward, for U.S. consumers Putt said the company will focus more on promotions and events to attract consumers to their products, such a ‘better-for-you’ offerings that can attract health-conscious consumers.
