Mondelez Cuts 2025 Profit Forecast 15% Amid Global Demand Weakness

Mondelez International, the maker of Cadbury and other snacks, has lowered its full-year sales growth forecast to just over 4% from a prior estimate of around 5%, citing weaker demand amid inflation and higher cocoa costs. The company now expects adjusted earnings per share to decline by about 15%, a steeper drop than the previously forecasted 10%, as consumers in North America and Europe cut back on premium chocolates and snacks. Despite price hikes to offset rising cocoa prices, demand has softened notably, with volumes falling 4.6 percentage points overall in the third quarter, including a 7.5 point decline in Europe and 1.8 points in North America. CEO Dirk Van de Put highlighted that while cocoa cost inflation peaked in the third quarter, recent moderation in cocoa prices and a promising cocoa crop offer some optimism. Mondelez is adapting by expanding healthier product lines like Oreo zero sugar and gluten-free options and focusing on smaller pack sizes and promotions to better meet consumers' value-conscious preferences. The company’s shares have declined in response to the lowered outlook, reflecting investor concerns over ongoing economic and geopolitical uncertainties impacting consumer spending and commodity prices.