Mondelez beats revenue estimates on emerging market strength; shares up 3%

(Reuters) – Oreo cookie maker Mondelez International Inc (O:) on Wednesday beat quarterly revenue estimates on higher demand for its snacks in emerging markets, sending shares up 3%.

Fast developing countries such as China and India have been a focus for Mondelez over the last few years, with the company tailoring products and marketing to local regions.

Products specific to local markets such as biscuit brands Jubilee in Russia and Biskuat in Indonesia, and Prince Polo chocolate bars in Poland have been key revenue drivers in emerging markets.

Revenue in emerging markets rose 4% in the fourth quarter.

Net earnings attributable to the company fell to $726 million, or 50 cents per share, in the quarter ended Dec. 31, from $823 million, or 56 cents per share.

Excluding certain items, Mondelez earned 61 cents per share, a cent above analysts’ estimates, according to IBES data from Refinitiv.

Mondelez said its adjusted operating income margin fell 20 basis points to 16.5% due to higher raw material costs and costs related to the closure of plants in Brazil.

Net revenue rose 2.1% to $6.91 billion, beating analysts’ expectations of $6.84 billion.

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