How Mondelēz International Leads Through Cocoa Inflation

The company behind the likes of Oreo and Cadbury, Mondelēz International, has reported its third quarter results for 2025, delivering solid top-line growth despite the impact of record-high cocoa cost inflation.

Acknowledging that the last quarter represents peak costs of the year, CEO and Chair Dirk Van de Put says: “Although we anticipate challenging conditions to continue in some markets, we are encouraged by recent moderation in cocoa prices, as well as promising signs for a strong cocoa crop this fall.”

Mondelēz reports top-line growth led by pricing execution, partially offset by volume decline, robust market share performance and solid year-to-date free cash flow delivery with significant capital return to shareholders.

Dirk adds: “Our teams are focused on executing clear plans for volume improvement, significantly increasing growth investments and driving meaningful cost efficiencies.”

Organic net revenue 

The company reported that revenues increased by 5.9% due to organic net revenue growth of 3.4%.

In terms of products, chocolate’s organic net revenue across brands like Cadbury, Milka, Toblerone and Marabou grew by 8.2%. Biscuits and baked snacks such as belVita, Ritz and Oreo grew by 1.2%.

Growth was a mixed picture across Mondelēz’s global landscape: North America is down by 0.3%, whereas Latin America saw an increase of 4.7%, Europe 5.1% and Asia, Middle East and Africa 5.3%.

Adjusted earnings per share (EPS) is reported at US$0.73, down 24.2%, which the company says was “driven by operating declines, partially offset by lower taxes, fewer shares outstanding, higher equity method investment earnings and the impact from an acquisition."

Gross profit was reported as decreasing by US$387m, partially offset by a favourable year-over-year change in market-to-market impacts from commodity and foreign currency derivatives and lower intangible asset impairment changes. 

Over the first nine months of 2025, Mondelēz reports returning US$3.7bn to shareholders in cash dividends and share repurchases.

The pressures of cocoa prices 

Between late 2023 and early 2025, cocoa prices soared by nearly three times. The Wall Street Journal reported at the end of 2024 that this was the result of low global stocks and that caused major supply deficits.

Other factors affecting the harvest include extreme and unpredictable weather, from droughts to increased rainfall.

Announcing Mondelēz’s Q1 2024, Dirk said that the inflation did not affect the fact that its “categories and growth opportunities remain sizable."

He added that the company was “fully covered for 2024 and well-protected heading into 2025."

At a September 2024 investor conference Dirk acknowledged that poor cocoa harvests in Africa had contributed to hiked cocoa prices in 2023 and into 2024, but said there was “more optimism” around higher prices in Europe.

Updating 2025 outlooks

Mondelēz has updated its 2025 outlook, expecting organic net revenue of 4%+ and adjusted EPS to decline approximately 15% on a constant currency basis.

The company also predicts a 2025 free cash flow of US$3bn.

Predicting currency translation, Mondelēz says net revenue growth would increase approximately by 0.5% and adjusted EPS by US$0.05.

Looking forward, Dirk says: “We remain confident in our teams’ proven track record of navigating volatility, as well as our strong business fundamentals, which position us well for next year and beyond.”