Mondelez International NASDAQ: MDLZ executives struck an upbeat tone on the company’s first-quarter 2026 earnings Q&A call, pointing to broad-based strength in emerging markets and improving trends in several developed markets. At the same time, management said it chose to reaffirm full-year EPS guidance amid new cost headwinds tied to the Middle East conflict and an intention to reinvest potential upside to sustain momentum into 2027.
Developed markets: Europe steadier, U.S. remains cautious
Chairman and CEO Dirk Van de Put said the company is “pleased with our improving performance in the developed markets,” describing results as “in line, maybe even slightly better than our expectations.”
In Europe, Van de Put characterized consumer confidence as “stable, but it’s fragile,” citing the Middle East conflict as a key overhang. Still, he said snacking value growth and category penetration in biscuits and chocolate “is holding up.” He added that retailer negotiations in Europe are “generally complete” and “in line with our planning,” and highlighted what he called a “very robust Easter season,” with share improvements in several markets. Management also pointed to continued strength from its Biscoff partnership and said chocolate in Australia and New Zealand saw “very strong growth,” also driven by Easter.
In North America, Van de Put said consumer confidence “remains quite low” and that consumers are focused on affordability, the economic outlook, and job security. He described the company’s main U.S. biscuit category as “flattish” on value, with growth mainly in “value club channels” and in “better for you and premium.” Even so, he said Mondelez delivered “slightly positive net revenue growth in North America” in the first quarter, citing momentum in growth channels.
Management noted share gains in crackers led by Ritz, and said the company’s candy business is performing well. Van de Put also highlighted growth at North American ventures, including Perfect Bar and Hu. Oreo, he said, underperformed due to a limited-time offering that “didn’t perform as well as last year’s,” but the company has “strong plans in place to improve Oreo in the year to go.”
Emerging markets: broad-based growth, led by India and Brazil
Van de Put said Mondelez is “very pleased” with performance in emerging markets, which he reminded investors represent “about 40% of our business.” He said the company grew 6.3% in the first quarter in those markets and described growth as resilient across snacking categories.
Among the company’s four key emerging markets, Van de Put said China was the only market where the consumer is softer, though confidence improved versus the prior quarter and the company remains positive on further improvement. He said consumer confidence is “very positive” in India, and also described Mexico and Brazil as markets where “the consumer is in a good place.”
Van de Put said first-quarter emerging-market results were “all driven by strong Easter,” with volume/mix up 0.5% (and closer to 1% excluding Argentina). Highlights by market included:
- China: Van de Put said results were “mid-single digit” with a strong Chinese New Year. He also cited “high single digit growth” at Evirth, an acquisition in cakes and pastries, and distribution gains.
- India: Management reported “strong double-digit growth” in chocolate and biscuits. Van de Put said Biscoff was launched in biscuits and the line is “already sold out.” He also pointed to a GST change that is “helping consumption.”
- Brazil: Van de Put said the business was “high single digit” with strong execution across biscuits, chocolate, and gum and candy.
- Mexico: The market was “flat” in Q1, with softness in candy and powdered beverages offsetting performance elsewhere, according to Van de Put.
Van de Put said the company views emerging markets as a “sustainable growth engine,” citing under-penetrated categories, a long runway for distribution, and increased reinvestment. He also said Mondelez can begin to implement revenue growth management initiatives in these markets.
Guidance stance: reaffirmed EPS amid Middle East-related costs and reinvestment plans
In response to questions about why the company reaffirmed guidance despite a strong start, COO and CFO Luca Zaramella said Mondelez is “ahead of expectation in Q1,” driven by broad-based growth as well as improvements in developed markets after addressing “some chocolate price gaps in Europe” and “fine-tuned the promo strategy in the U.S.” He also cited new product launches, including Biscoff, as performing well.
However, Zaramella said the company is facing headwinds “that we didn’t have in our original forecast,” particularly stemming from the Middle East crisis. He said the team is finding alternative routes to produce and deliver brands, but that this is coming “at an extra cost.” He also noted that oil costs are having “a little bit of an impact on the profitability,” though he said the company is covered for the year.
Zaramella said that with those incremental costs, the company chose to “confirm guidance on the bottom line.” He added that if EPS upside emerges, Mondelez would “most likely” invest it back into the business to maintain momentum “ahead of clearly what we committed to, which is a strong 2027 EPS growth.”
Europe and cocoa: stable pricing, improving share trends, and a “fair” cocoa level
On competition and pricing in Europe, management said the situation has calmed relative to earlier concerns. Zaramella said cocoa has improved but “most of the industry is still covered for the year,” and the market is waiting to see what the main crop brings. He said customer negotiations have gone well and that the company does not see “any movement in price happening at the moment.”
He also said Mondelez’s European chocolate business is off to a good start, helped by Easter, Biscoff, and Toblerone Pralines. Zaramella said share trends are improving and that the base business (excluding Easter) “turned from a share loss into slightly positive over the last month,” with volume trends improving sequentially. He added that the company is stepping up brand investment, implementing pack/price architecture work, and resetting price points that were “off in certain markets.”
On the consumer, Van de Put said the company is not seeing changes in buying patterns that are concerning so far, but is watching energy prices and broader inflation impacts that could emerge if the Middle East conflict persists.
On cocoa, Zaramella said “nothing has really fundamentally changed,” adding the mid-crop was positive and supply outside West Africa has been supportive. He said industry coverage has extended to “around about 10 months,” which he described as the highest in some time, contributing to price movement off earlier lows. Zaramella said the current level—“2,500”—is “a much fairer representation of what supply and demand would say,” and he suggested another year of surplus is possible, while noting demand in Europe appears subdued.
Innovation and North America supply chain: price points, fewer “bigger bets,” and network upgrades
Van de Put outlined Mondelez’s innovation approach as the consumer becomes more value-conscious. He said the company is focused first on “hit[ting] the right price points on your core range,” paired with in-store activations and innovations that “stand out.” He said the company is pursuing “bigger and fewer bets” alongside core renovation efforts.
He pointed to several innovation themes discussed on the call, including well-being products (such as protein and fiber), global brand extensions like gluten-free and zero added sugar Oreo offerings, expansion in cakes and pastries (including Milka croissant in Europe and Oreo cakes in China and the U.S.), premium and indulgent chocolate initiatives (including Toblerone and new ranges like Cadbury and More), and continued expansion of the Biscoff partnership. He also cited Ritz innovations, including Ritz Drizzle and Ritz Bites.
Separately, Zaramella provided additional detail on a North America biscuits supply chain modernization effort. He said about 60% of the U.S. network is “state-of-the-art,” but acknowledged some plants have higher waste and below-expected productivity. The company plans to simplify certain operations, bring proven volume platforms currently made by co-manufacturers back in-house, and invest in packaging capabilities to serve shifting channel demand—such as club formats and mixed multipacks. He also said Mondelez plans to automate distribution through “AI fulfillment centers” to improve speed, reduce inventory, and lower costs across branches.
About Mondelez International NASDAQ: MDLZ
Mondelez International is a global snacks company headquartered in Chicago, Illinois, formed in 2012 when Kraft Foods split to create a business focused on snack foods and a separate North American grocery company. Mondelez develops, manufactures, markets and distributes a broad portfolio of snack products intended for retail, foodservice and e‑commerce channels around the world.
The company's product mix centers on biscuits and cookies, chocolate and confectionery, gum and candy, and savory crackers and baked snacks.
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