What's happened
Mondelez reports a slowdown in organic sales growth to 4% or more in 2025, down from 5%, as consumers cut back on snacks and focus on essentials. Earnings per share are expected to decline about 15%, reflecting economic concerns and pricing frustrations among shoppers.
What's behind the headline?
Consumer behavior shifts are clearly impacting Mondelez's performance. The company’s revised guidance indicates a significant slowdown, with organic sales growth dropping from 5% to 4% or more. This reflects broader economic pressures, including inflation and economic uncertainty, which are causing consumers to cut back on discretionary spending. The deeper earnings decline forecasted suggests that the company will face ongoing margin pressures. This situation underscores how macroeconomic factors directly influence consumer product companies, and Mondelez’s experience may foreshadow similar trends across the food and snack industry. The CEO’s comments about consumer frustration with pricing point to a potential future where companies will need to innovate or adjust pricing strategies to sustain growth. Overall, Mondelez’s outlook signals a cautious consumer environment that will likely persist into 2026, affecting sales and profitability across the sector.
What the papers say
Bloomberg and The Japan Times both report on Mondelez’s revised sales guidance and earnings outlook, emphasizing the slowdown in organic growth and the deeper profit decline. Bloomberg highlights the reduction from 5% to 4% or more, while The Japan Times notes the broader economic concerns influencing consumer behavior. The articles collectively suggest that Mondelez’s challenges are part of a wider economic trend impacting consumer discretionary spending, with both sources aligning on the key figures but providing slightly different contextual emphasis. Bloomberg’s focus is on the financial metrics, whereas The Japan Times emphasizes consumer sentiment and economic concerns, providing a comprehensive view of the company’s current struggles.
How we got here
Mondelez, a major snack food company, previously guided for about 5% organic sales growth in 2025. Recent economic uncertainties and inflation have led consumers to prioritize essential goods over snacks, impacting sales. The company’s CEO highlighted consumer concerns about the economy and frustration with pricing, which has affected demand for products like cookies and snacks.
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Mondelēz International, Inc. ( MON-də-LEEZ) is an American multinational confectionery, food, holding, beverage and snack food company based in Chicago. Mondelez has an annual revenue of about $26.5 billion and operates in approximately 160 countries...