Earnings Preview: Mondelez's 1st quarterly report
NEW YORK (AP) — Mondelez International Inc., home to snack brands including Oreo, Chips Ahoy and Nabisco, is set to report its first quarterly results as an independent company Wednesday.
Mondelez split off from Kraft last month.
WHAT TO WATCH FOR: The company, located in Deerfield, Ill., is expected to grow profit faster than Kraft Foods Group Inc., which now focuses on North American grocery brands such as Oscar Mayer, Miracle Whip and Maxwell House.
Mondelez is expected to have long-term revenue growth of 5 to 7 percent and earnings growth in the double digits, while Kraft Foods is expected to have earnings per share growth in the mid- to high-single digits, the companies have said.
WHY IT MATTERS: Mondelez is pursuing growth on a couple different fronts. To start, the company is focusing on emerging markets such as China by tailoring its snacks to local taste preferences. Expanding in emerging markets is critical for Mondelez and other U.S. food companies that are seeing much slower growth at home.
Mondelez also wants to spread products popular in one market to other regions of the world. Its Belvita breakfast crackers, for example, were first introduced in Europe before coming to the U.S. this year.
WHAT'S EXPECTED: Analysts on average expect a profit of 36 cents per share on revenue of $8.65 billion, according to FactSet.