Mondelez's Results Top Expectations

Mondelez International Inc. said its adjusted per-share earnings beat expectations for the third quarter and the company raised its 2016 guidance.

The latest results come after Mondelez ended its pursuit of Hershey Co. in August, as the famed chocolatier rebuffed the Oreo cookie maker's latest acquisition offer. Mondelez's monthslong takeover campaign would have created the world's largest candy company.

Mondelez on Wednesday said it raised its 2016 adjusted per-share earnings outlook to an increase of roughly 25% excluding currency effects. Mondelez previously projected adjusted per-share profit to grow by a double-digit %.

Mondelez and other big food companies continued to face challenges from a shift by U.S. consumers toward foods perceived as healthier. The snack maker also increasingly has looked to emerging markets for growth.

Overall, Mondelez reported a profit of $548 million, or 35 cents a share, down from $7.27 billion, or $4.46 a share, a year earlier. The year-earlier earnings were boosted by the company's interest in coffee maker Jacobs Douwe Egberts. Excluding items, adjusted per-share earnings rose to 52 cents from 38 cents.

Revenue decreased 6.6% to $ 6.4 billion. Organic sales—which typically exclude currency impacts, acquisitions and divestitures—grew 1%.

Analysts polled by Thomson Reuters expected per-share profit of 43 cents and revenue of $6.45 billion.

Gross margin fell 0.1 percentage point to 38.9%.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 08:55 ET (12:55 GMT)

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