Solid Top-Line Growth: Mondelez reported a 3.1% organic net revenue growth in Q1 2025, driven primarily by strong pricing execution in its chocolate business amidst unprecedented cocoa input costs. The volume mix was negatively impacted by a decline of 3.5 points, primarily due to elasticity, trade destocking, one-time Easter phasing, and planned pricing strategies.
Cocoa Pricing Strategy: The company's strategy to mitigate cocoa inflation includes aggressive pricing implementation and the introduction of various pack sizes to appeal to consumers. Pricing is seeing mixed reactions in different markets, with Europe achieving strong pricing execution and minimal disruption while North America is facing challenges related to lower consumer confidence and retail destocking.
Mixed Regional Performance: North America witnessed a decline of 3.6% in sales, largely due to retail destocking and lower consumer demand, while Europe experienced robust growth of 8.9%. Emerging markets showed mixed results, with solid performances in Brazil and China but challenges in India and Southeast Asia where consumer confidence is softening.