Mondelez International Inc. (MDLZ) plunged around 5% in after-hours trading on Tuesday after the snack food giant reported mixed Q4 results and warned that soaring cocoa costs would hammer its profits in 2025.
For the fourth quarter, Mondelez posted revenue of $9.6 billion, slightly missing Wall Street estimates of $9.64 billion. Adjusted earnings per share of $0.65 also came in a penny below expectations of $0.66.
However, more concerning for investors were the company's full-year 2025 forecasts. Mondelez said it expects organic net revenue growth of around 5%, topping estimates. But adjusted EPS is expected to decline around 10% for the year, much worse than the 6.7% drop analysts were predicting.
The weak earnings outlook was attributed to "unprecedented inflation" in the cost of cocoa, a key ingredient in Mondelez's popular chocolate brands like Cadbury and Toblerone. The company said it expects cocoa costs to remain elevated through 2025, forcing it to raise prices which could dampen consumer demand.
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