(Reuters)-Mondelliz International expects Cadbury, a greater decrease in its annual profits on Tuesday, indicating pressure from high costs, including the rise in cocoa prices, which led to a decrease in its shares by approximately 6 % after the bell.
Cocoa prices – a major ingredient in chocolate – increased unabated during the past year, forcing companies such as Mondelez to increase the prices of their products.
This has pushed budget -recipient consumers, who were already wrestling with the cost of living, towards cheaper alternatives.
Chicago -based MondeEz expects its 2025 profit will decrease by 10 % on the basis of modification, compared to an average estimate of analysts for a decrease of 6.7 %, according to the data collected by LSEG.
“This view does not reflect any imposition on the tariff for import by the United States and the possible revenge measures taken by other countries, as the customs tariff and the commercial environment are unconfirmed and rapidly develop at this time.”
Mondelliz sizes in Europe, its largest market, decreased by revenue, in the fourth quarter due to the high price. However, in North America, the storage units increased after price decreased by 0.9 percent.
The increase in cocoa prices, along with the high transportation costs, led to a decrease in 650-Basis point in the margin of the average total profit of the company to 31.5 %.
Mondeelz recorded net revenues of $ 9.60 billion for the three months ending December 31, compared to $ 9.64 billion.
On an average basis, he got 65 cents per share, less than 66 cents of analysts.
(Beil J Katat in Begalugu;