Chicago — Mondelēz International Inc. is updating its long-term algorithm to 3 to 5 percent organic net revenue growth, up from previous guidance of 3 percent plus.
“Our competitive advantages in the marketplace and focused strategy on global snacking leadership give us great confidence in our ability to sustain strong top- and bottom-line growth for many years to come,” says Dirk Van de Put, chairman & CEO. “Building on our category leadership, favorable geographic footprint, and the power of our iconic brands, we are well positioned for stronger growth in the decade ahead.”
Additionally, Mondelez plans to divest its gum brands in developed markets after completing a strategic review during the past year. The company also disclosed its intention to divest the global Halls business. Mondelēz will maintain the brands and products within its candy business, as well as its emerging market gum business.
The company reports it will continue to prioritize growth, execution and culture as three pillars of its strategy — investing in differentiated marketing and sales capabilities, while strengthening its local-first operating model to empower employees and promote a growth culture.
Recognizing the challenges facing the planet and the communities in which it operates, the company notes it is also elevating sustainability to become a fourth pillar in its long-term growth strategy.
By further advancing its Snacking Made Right agenda across a focused set of environmental, social and governance priorities, Mondelēz aims to help drive positive change at scale, creating long-term value for both the business and its stakeholders.
The company also reveals it is reshaping its portfolio, with a long-term vision to accelerate growth and generate 90 percent of revenue in chocolate and biscuits, including baked snacks. It notes that chocolate and biscuits are historically durable categories in both developed and emerging markets, with significant headroom to increase penetration and per capita consumption.
As it continues to reshape its portfolio, Mondelēz says it will drive value through organic growth and targeted acquisitions that expand its presence in chocolate, biscuits and baked snacks by filling geographic gaps and extending into under-represented segments and price tiers.
The eight acquisitions the company has completed or announced since 2018 add $2 billion in annual revenue, and have had an average growth rate in the high single digits.
To enable its strategy, Mondelēz has made investments in capabilities and culture, including investing more than $1 billion to become the digital commerce snacks leader. The company also says it intends to deliver 20 percent of revenues from digital channels by 2030, up from 6 percent of 2021 revenues. Along with its investments in technology, the company is investing behind future-forward commercial growth capabilities, including integrated agile processes to drive simpler ways of working; expanded commercial excellence training programs; and increased digital learning opportunities.
“Our growth ambition will not be possible without the passion, dedication and commitment of our people – the very best in the consumer packaged goods industry,” Van de Put says. “To accelerate our growth and focus, we are taking our talent and culture strategy to the next level – by doubling down on initiatives to advance diversity, equity and inclusion; expanding investment in top talent programs; and rolling out a global, holistic employee well-being program.”
The company says it continues to expect adjusted EPS growth on a constant currency basis in the high single digits and gradually increasing free cash flow of $3 billion plus over the long term.
“Consistent delivery against our financial commitments, investment in the long-term health of our brands and the capabilities of our people — combined with our key competitive advantages — position us well to create significant value for our stakeholders,” says Luca Zaramella, Mondelēz CFO.