(Reuters) -Mondelez International on Thursday raised its annual 2023 revenue growth forecast for the second time this year, helped by robust demand for the Oreo maker’s snacks and chocolates despite higher prices.
Shares of the Cadbury chocolate maker rose 1.6% in after-hours trading as the company also beat second-quarter revenue expectations.
Packaged food companies like Campbell Soup, Cheerios maker General Mills, Kraft Heinz and Kellogg have leveraged strong demand to hike prices and shield their margins from higher input costs.
Mondelez’s upbeat forecast came on the back of a strong first quarter and indicated that consumers remained resilient to higher prices for their favorite snack brands.
The company said it expects a full-year organic net revenue growth of more than 12% in 2023, up from a prior forecast of more than 10% growth. Analysts on average were expecting a 10.7% increase, according to Refinitiv data.
The company’s net revenue rose 17% to $8.51 billion in the second quarter, surpassing analysts’ average estimate of $8.21 billion.
(Reporting by Savyata Mishra in Bengaluru; Editing by Pooja Desai)
