Mondelez’s underlying profits have fallen despite an 8.2% jump in reported first quarter revenues.
The global confectionery giant’s adjusted operating profits fell 19% to $1.2bn, as revenue gains were unable to prevent a 2.7 percentage point dip in adjusted gross margin.
Turning over $10.1bn (£7.5bn) in the quarter to 31 March 2026, Mondelez’s revenues grew 8.2% on a reported basis, with 3% organic growth. Reported operating profits rose to $808m, primarily due to favourable impacts from commodity and foreign currency exchange.
While volumes were down across most of the world – barring Asia, the Middle East and Africa – lower pricing increases helped curb the fall in the developed world as demand recovered.
Globally, volumes were down just 0.5%, compared with a 4.8% drop in Q4 2025.
“We posted solid first-quarter results led by strong topline growth in our emerging markets while developed market growth showed signs of improvement,” said CEO Dirk Van de Put.
“These results reflect strong execution of our consumer-centric strategy supported by increased investments behind our brands and growth platforms despite ongoing macro volatility. The fundamentals of our business remain strong, the capabilities of our people are unmatched, and we continue to boldly invest behind our long-term growth opportunities to enable sustained performance for years to come.”
Organic growth was particularly strong in Mondelez’s emerging markets, with a 5.8% bump in volumes in Asia, the Middle East and Africa pushing the region to 11.3% organic growth.
In Europe, volumes were down 3.2%. Taken alongside a 2.6% increase in pricing, the fall pushed Mondelez’s organic revenues into an 0.6% decline in the quarter for the region.
Mondelez confirmed its prior guidance of 0%-2% organic net revenue growth despite the “greater than usual volatility” in the markets.
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