(Reuters) -Cadbury parent Mondelez International missed expectations for second-quarter revenue on Tuesday, as budget-conscious customers opted for lower-priced alternatives amid sticky inflation.
While consumer packaged goods companies like Mondelez International, Hershey have beefed up prices to counter higher costs of raw materials such as cocoa and sugar, demand for their products faltered.
Mondelez’s sales volumes dropped as lower-income consumers preferred cheaper private label brands over its more expensive products including Chip Ahoy! and Oreo cookies.
The company’s quarterly volumes fell 2.2 percentage points, while its prices were up 4.7 percentage points.
The company posted net revenue of $8.34 billion in the quarter ended June 30, compared with analysts’ average estimate of $8.45 billion, according to LSEG data.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
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