Mondelez International NASDAQ: MDLZ executives said the company remains on track with its 2026 outlook and expects strong earnings-per-share growth in 2027, supported by volume-led growth, productivity initiatives and continued investment in brands, innovation and emerging-market distribution.
During the company’s third-quarter 2026 earnings Q&A session, Chairman and CEO Dirk Van de Put described consumer conditions as resilient across many emerging markets, stable but cautious in Europe, and soft in North America. The company said it continues to see opportunities to expand distribution, particularly in India, Brazil and China, while managing inflationary pressures and selectively using pricing and package-price architecture initiatives.
Emerging Markets Remain a Growth Engine
Van de Put said consumer confidence in emerging markets has remained resilient, with India performing particularly well and Mexico and Brazil described as solid. China has been softer, he said, but Mondelez remains constructive on the market because of its volume growth, top-line performance and distribution opportunity.
The company added approximately 130,000 outlets in India year to date, Van de Put said. In Brazil, Mondelez is now present in more than 1 million stores. China also continues to offer a “very long runway” for distribution expansion, according to the CEO.
Chief Operating Officer Luca Zaramella said the company estimates it still has roughly 25% additional numeric distribution opportunity in markets including China, India and Brazil. He also cited opportunities to increase the number of products carried by stores and upgrade the company’s in-store presence, including through coolers in India.
“The runway that we have in places like China, India, Brazil, it is most likely we still have 25% numeric distribution to go,” Zaramella said.
In Latin America, Zaramella said Argentina has been the primary drag on volume because Mondelez is managing that market for cash and has been pricing “very diligently.” Excluding Argentina, he said volume mix in the region’s non-chocolate businesses was about 4% to 5% in the latest quarter. He also pointed to strong gum and candy performance, led by Trident, while saying chocolate in Brazil is beginning to improve following prior pricing and package-size actions.
Europe Sees Volume Growth Despite Cautious Consumer
In Europe, Van de Put said consumer confidence was generally stable and possibly modestly better than in the prior quarter, though shoppers remain cautious amid energy costs and broader cost-of-living pressures. He said Mondelez posted broad-based volume-mix growth of 1.6 percentage points in the region, despite unseasonably hot weather that reduced its European growth by about 1%.
The company has continued advertising and consumer-support investment, while highlighting innovation including Biscoff and the Milka Croissant. Van de Put said Mondelez expects positive volume growth in Europe to continue through the remainder of the year.
Zaramella said pricing in Europe has been affected by selective price adjustments made earlier in 2026, particularly in chocolate, as the company began to lap higher pricing from the second half of the prior year. He said the company’s emphasis has been on gross-profit-dollar growth, consumer affordability, penetration and brand loyalty rather than simply maintaining price growth.
When asked whether negative European price growth could continue, Zaramella said it should be expected for the next couple of quarters, noting that pricing increased through the quarters of the prior year.
North America Focuses on Promotions, Innovation and Share
Van de Put said North American consumer confidence remains soft, with growth concentrated among higher-income households in what he described as a continuing “K-shaped economy.” Still, he said Mondelez feels positive about its third-quarter and year-to-date results in the region and expects continued solid growth.
Zaramella attributed the company’s North American performance to improving market-share trends, more precise promotional activity, higher advertising and consumer-support spending, and innovation. He cited strength in savory biscuits, candy and brands including Sour Patch Kids, as well as launches such as Oreo Zero, Ritz Minis and Clif High Protein.
Rather than broadly reducing prices, Zaramella said Mondelez has refined its promotional approach to improve incrementality. Looking ahead, the company plans to be selective with any pricing actions and expects most to be implemented through package-price architecture. It also expects productivity and supply-chain efforts to support profitability.
2027 Outlook and Cost Considerations
Chief Financial Officer Amit Banati said Mondelez maintained its 2026 top-line and EPS outlook. The company plans to reinvest upside into areas it views as effective, including advertising, innovation, Biscoff and emerging markets, while continuing to absorb costs associated with the Middle East war within its existing outlook.
For 2027, Banati said the company remains confident it can deliver strong EPS growth despite macroeconomic volatility and inflation in freight, dairy, oil and packaging. He said the expected growth would be supported by emerging-market strength, improving stability in Europe, continued U.S. momentum and productivity savings.
Third-quarter gross-profit performance benefited from strong volume growth, supply-chain and procurement productivity, and the timing of lower cacao costs, Banati said. He added that the company expects strong gross-profit and operating-income-dollar growth to continue in the fourth quarter.
On cacao, Banati said market fundamentals are materially stronger than during the 2024 spike. Mondelez expects the 2025-2026 cycle to end with an estimated surplus of nearly 500,000 tons. While the company cited projections for a roughly 190,000-ton deficit in 2026-2027 tied to crop conditions in Ivory Coast and Ghana and expectations for El Niño, Banati said existing surplus supply and industry coverage levels of about nine months provide support.
Undercover Snacks Deal Supports Better-For-You Strategy
Mondelez also discussed its agreement to acquire a majority stake in Undercover Snacks, a small but rapidly growing maker of crispy quinoa snacks that are generally chocolate-covered or frosted. Van de Put described the products as gluten-free, allergy-friendly and positioned around better-for-you ingredients and permissible indulgence.
The business will operate as a standalone unit within Mondelez’s North American ventures organization, alongside brands including Perfect Snacks, Tate’s and Hu vegan chocolate. Undercover CEO Diana Levy will remain in her role, Van de Put said.
Mondelez expects the deal to close by early 2027, subject to customary conditions and regulatory approval. Van de Put said the acquisition is not expected to have a significant financial impact in 2027 but aligns with the company’s effort to evolve its portfolio toward healthier snacking options.
More broadly, Van de Put said Mondelez continues to favor targeted bolt-on acquisitions, generally in geographies or category segments where it sees portfolio gaps, rather than pursuing substantially larger transactions.
About Mondelez International (NASDAQ:MDLZ)
Mondelez International, Inc NASDAQ: MDLZ is a global snack-food company that develops, manufactures, markets and sells branded products in categories including biscuits, chocolate, baked snacks, cheese and grocery items. Its portfolio includes well-known brands such as Oreo, Ritz, Chips Ahoy!, belVita, CLIF, Cadbury, Milka, Toblerone and Trident.
The company sells its products through retailers, wholesalers, e-commerce channels and other distribution networks. Mondelez serves consumers in more than 150 countries, with operations and brands tailored to markets across North America, Latin America, Europe, Asia, the Middle East and Africa.
Mondelez was formed in 2012 when Kraft Foods separated its global snack-food business from its North American grocery operations.
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