Mondelez has announced it will start selling Milka chocolate in China, where chocolate consumption is lower than any other market.
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According to Zacks, “Estimates have remained mostly stable lately, ahead of Mondelez’ second quarter earnings release this week”.
Later on the call, when a Wall Street analyst asked how Mondelez got to a point where it was willing to consider making a large acquisition, Rosenfeld had no comment.
Mondelez International, Inc.is a snack food and beverage company.
Mondelez will start selling Milka brand chocolate in China, hoping to capture a slice of a still-small market it believes is ripe for opportunity.
However, net income attributable to Mondelez rose to $464 million, or 29 cents per share, from $406 million, or 25 cents per share, a year earlier. The firm had revenue of $6.50 billion for the quarter, compared to analysts’ expectations of $6.44 billion. Analysts estimated 40 cents on average. In North America, reported new revenues were almost flat at $1.72 billion.
“China saw a 3 percent decline in chocolate confectionery sales in 2015, a decline that is expected to continue in 2016, which means that the company could arguably be entering the market at the wrong time”, Skelly said. “The strength of our iconic Milka brand, combined with a winning recipe uniquely designed for Chinese consumers gives us great confidence that we’ll be successful with chocolate in China, too”. Hershey entered China market before Mondelez’s move, however, Hershey had a hard time in the $2.8 billion market and suffered a loss in global division a year ago.
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Deerfield-based Mondelez already sells items from its biscuit and gum categories in China.
