Mondelez Lowers 2025 Outlook Citing Cocoa Price Impact

Mondelez International has lowered its annual earnings per share (EPS) forecast to a decline of about 15% for 2025, worsening from a previous estimate of a 10% decline, due to persistent high cocoa prices that have squeezed profits. The company now expects organic revenue growth of 4% or more in 2025, down from an earlier projection of around 5%, with third-quarter results showing a 24.2% EPS decline and a 3.4% organic revenue increase driven largely by price hikes offsetting volume declines. Despite volume pressures, Mondelez aims for high single-digit EPS growth by 2026 through strategic pricing and channel expansion efforts. CEO Dirk Van de Put expressed cautious optimism about recent moderation in cocoa prices and a strong cocoa crop, which could ease cost pressures going forward. However, the company is still navigating challenging market conditions, including volume drops and inflation, and is implementing growth investments and cost efficiencies to improve performance. Shares of Mondelez fell in reaction to the lowered outlook, reflecting investor concern over commodity cost impacts and volume softness.