Mondelez predicts a steep annual profit decline in rising cocoa prices

(Reuters) -Cadbury -Parent Mondelez International forecast on Tuesday’s annual profit, which means pressure at higher costs, including rising cocoa prices, sending shares by nearly 6% after the clock.

Prices for cocoa – the central ingredient of chocolate – have ruthlessly risen over the past year, forcing companies like Mondelez to raise their products.

It has pushed budget -collection consumers who were already fighting cheaper alternatives with the cost of living.

Mondelez, located in Chicago, expects its 2025 victory to decline on a 10% custom base compared to an average estimate of analysts by 6.7% decrease, according to LSEG data.

« This view does not reflect the prescription of the US imported tutorials and the potential counter-measures of other countries, as the tariff and trade environment are uncertain and rapidly evolving at the moment, » Oreo and Toblerone Maker said.

Mondelez’s volumes in Europe, its major market net sales, decreased in the last quarter due to the increase price increases. However, in North America, volumes increased after a 0.9 % point drop.

The rise in cocoa prices, combined with higher transport costs, led to a decline in the company’s adjusted gross margin to 31.5 %.

Mondelez announced that net income was $ 9.60 billion for three months ending December 31, compared to $ 9.64 billion.

It earned a thorough adjustment of 65 cents from the share, below the analyst estimate of 66 cents per share.

(Beil J Katat Begalugu;