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SummaryCompaniesShares drop 4% in extended tradingCo says US government shutdown worsening consumer confidenceEdges past quarterly sales, profit estimates on higher pricing Oct 28 (Reuters) - Mondelez International (MDLZ.O), opens new tab cut its annual profit forecast on Tuesday, as value-conscious consumers scaled back on purchases of its pricey chocolates and snacks in North America and Europe, and higher cost of cocoa added pressure. Consumers in the U.S. have been seeking healthier snacking options as they turn more conscious of their protein and sugar intakes, forcing packaged food companies to rethink their portfolios. Mondelez said it was looking to expand its Oreo zero sugar and gluten-free ranges. Advertisement · Scroll to continue The company has raised prices to offset higher cocoa costs. However, inflation has turned consumers more price conscious, weakening demand for Mondelez's products. The prolonged U.S. government shutdown exacerbated economic uncertainty and cost-of-living concerns in the country, which has impacted consumer confidence, Mondelez executives said in a prepared statement. Consumers, frustrated by price hikes, were focusing on essentials. This affected sales of snacks, and promotions were also not succeeding in bringing demand back into the category in the U.S., Mondelez executives said on a post-earnings call. Advertisement · Scroll to continue With Halloween approaching, Mondelez was looking to offer more differentiation between smaller and larger packs and work on its promotions to make sure products are affordable, the company said. Like other consumer-facing firms, including Tide detergent maker Procter & Gamble (PG.N), opens new tab and snacks giant PepsiCo (PEP.O), opens new tab, Mondelez said lower-income consumers were shopping for value with smaller packs and at discounted channels, while higher-income consumers looked for premium, fresher products. Mondelez's Volumes fell 7.5 percentage points in Europe, its biggest market, and 1.8 pp in North America. Van de Put said that the company, which raised prices by 12.6 pp in the quarter in Europe, was also hurt by lower prices from its competitors. The company expects 2025 adjusted earnings per share to decline about 15%, compared with its prior target of a 10% fall. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2125200913 About ConnatixV2125200913 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Its shares were down 4% in extended trading after Mondelez also tempered its expectation for annual organic net revenue growth to 4% plus, compared with about 5% it forecast in July. Mondelez's quarterly net sales of $9.74 billion edged past analysts' average estimate of $9.71 billion, according to data compiled by LSEG, while its adjusted earnings per share also beat expectations by 2 cents. Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar and Maju Samuel Purchase Licensing Rights
