Mondelēz International on Navigating Cocoa Inflation

Mondelēz International, the parent company of brands such as Oreo and Cadbury, has reported its third-quarter results for 2025, revealing solid top-line growth while managing the effects of record-high cocoa cost inflation. The company has acknowledged that the last quarter represents the peak costs for the year.

Dirk Van de Put, CEO and Chair of Mondelēz International, says: “Although we anticipate challenging conditions to continue in some markets, we are encouraged by new moderation in cocoa prices as well as promising signs for a strong cocoa crop this fall.”

The results indicate top-line growth led by pricing execution, which was partially offset by a decline in volume. Mondelēz International also reported robust market share performance and a solid delivery of free cash flow year-to-date, with substantial capital returned to shareholders.

Chocolate and regional performance

According to its report, revenues increased by 5.9% caused by organic net revenue growth of 3.4%.

Mondelēz International’s product categories showed varied performance. The chocolate division, which includes brands like Cadbury, Milka, Toblerone and Marabou, grew its organic net revenue by 8.2%.

Biscuits and baked snacks, a category that includes Belvita, Ritz and Oreo, saw a more modest growth of 1.2%.

This growth presented a mixed picture across Mondelēz’s global operations. In North America, revenue was down by 0.3% while other regions saw increases.

Latin America’s revenue increased by 4.7%, Europe grew by 5.1% and the combined region of Asia, the Middle East and Africa saw a 5.3% rise.

This regional variation could highlight the differing market conditions and consumer responses to pricing strategies across the globe.

Profitability and shareholder returns

While revenue showed growth, profitability faced headwinds. Mondelēz International reported adjusted earnings per share (EPS) at US$0.73, a figure down by 24.2%.

Mondelēz International stated this was “a result of operating declines partially offset by lower taxes, fewer shares outstanding, higher equity method investment earnings and the impact from an acquisition".

Gross profit decreased by US$387m. This was partially offset by a favourable year-over-year change in market-to-market impacts from commodity and foreign currency derivatives, alongside lower intangible asset impairment changes.

Despite these pressures, Mondelēz reported returning US$3.7bn to shareholders through cash dividends and share repurchases over the first nine months of 2025.

Dirk adds: “Our teams are focused on executing clear plans for volume improvement, increasing growth investments and promoting meaningful cost efficiencies.”

Managing cocoa market pressures

The pressure on profitability is linked to the soaring price of cocoa, which experienced a near threefold increase between late 2023 and early 2025.

This increase was attributed to low global stocks, causing major supply deficits coupled with extreme and unpredictable weather patterns affecting harvests.

Earlier in the year, following Mondelēz’s Q1 2024 announcement, Dirk said that the inflation did not change the fact that its “categories and growth opportunities remain sizable."

At the time, he added that Mondelēz International was “fully covered for 2024 and well-protected heading into 2025".

Mondelēz International has now updated its 2025 outlook, expecting organic net revenue growth of 4% or more. However, it anticipates that adjusted EPS will decline by approximately 15% on a constant currency basis. Mondelēz International also projects a free cash flow of US$3bn for 2025.

Looking ahead, Dirk says: “We remain confident in our teams’ proven track record of navigating volatility as well as our strong business fundamentals, which position us well for next year and beyond.”