Volumes have fallen at Mondelez after sharp price increases cut into demand.
The global snacks giant saw volume/mix fall 4.8% in the final quarter of 2025 in the wake of a 9.9% price hike.
The effect was most pronounced in Mondelez’s $15bn European division, which makes up its largest market. Raising prices by 15.7% in Q4, the company suffered a corresponding 7.4% downswing on volume and mix.
Full-year pricing in the region was up 13.9% on 2024’s level.
North America – where the snacks market is depressed amid cost of living pressures, health trends and strong GLP-1 uptake – saw volumes fall 2.7% in the year despite a rise in prices of just 0.8%.
Despite cutting into volumes, Mondelez’s pricing strategy protected growth: in the key fourth quarter to 31 December, the company achieved 9.3% net revenue growth to take $10.5bn – a modest beat compared to analyst consensus estimates of $10.3bn.
“We delivered solid top-line results, generated strong cashflow, and returned significant cash to shareholders in a dynamic and challenging 2025 environment. While unprecedented cocoa cost headwinds impacted our profitability, our teams remained focused on what they can control to best position us for sustainable, profitable growth,” said CEO and chairman Dirk Van de Put.
Organic growth in the year was up 4.3%, with the $15bn European division leading the pack with 12.9% sales growth.
Despite growth in the company’s income, continued high cocoa prices and “unfavourable” product mix hit the bottom line. Full-year adjusted gross profit margin fell 580 basis points to 32%, and Mondelez’s adjusted operating profit fell 15.5% on a constant currency basis to $5.1bn.
Mondelez’s share price fell 4.5% in pre-market trading.
Falling wholesale cocoa prices, however, have given room for the chocolatier’s profitability to recover.
“As 2026 commences, we are executing clear plans to create multi-year shareholder value through improved volumes, brand investments, structural cost savings and disciplined capital allocation coupled with stabilising cocoa costs,” said Van de Put.
“We remain convinced that our scale across markets – along with our stable of iconic brands, extensive route-to-market capabilities and supply chain strength – give us fundamental advantages in the years to come.”
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