We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mondelez (MDLZ) Looks Tempting on Snacking Category Strength
Read MoreHide Full Article
Mondelez International, Inc. (MDLZ - Free Report) has been benefiting from the strength of its snacks business. At the launch of its fourth annual State of Snacking report, the company highlighted that consumers continue to put snacking as a priority, even amid inflated costs and economic headwinds.
A survey of the attitude and behavior of consumers in 12 countries reveals an increased preference for snacking, which is replacing traditional meals at an increasing rate. Given these trends, Mondelez looks well-placed with its efforts to solidify its snacking category.
Mondelez Focuses on Snacking
Mondelez has always been keen on expanding its business through acquisitions and alliances. The company has been expanding its snacking category in particular.
As consumers prefer snacking over traditional meals, the company’s core categories — chocolates and biscuits — have historically depicted resilience to economic downturns and pricing actions. Consumers in developed countries consider chocolates and biscuits as affordable indulgences and one of the most-valued snacking products.
Image Source: Zacks Investment Research
In its third-quarter earnings release, MDLZ noted that it closed the Ricolino buyout, which is expected to double the size of its Mexico business. In August 2022, it closed the buyout of Clif Bar. Management announced incremental investments in the Cocoa Life program and expanded its target to source all cocoa volumes from Cocoa Life by 2030.
Mondelez concluded the integration of the Chipita S.A. business, which was acquired in January 2022 and is a major producer of sweet and salty snacks in Central and Eastern Europe. Contributions from this acquisition boosted net revenues in the third quarter of 2022.
In 2021, Mondelez took over a renowned sports performance and active nutrition brand — Grenade. Further, the company acquired the Australia-based food company — Gourmet Food Holdings — which operates in the premium biscuit and cracker category.
Mondelez completed the acquisition of Hu Master Holdings, the parent company of Hu Products on Jan 4, 2021. Earlier, the company acquired a majority interest in Give & Go (in April 2020), which is a pioneer in fully finished sweet baked goods.
The company’s focus on undertaking acquisitions to gain scale in its categories and distribution capabilities bodes well. Mondelez is committed to increasing its focus on areas with higher growth potential. The company divested its beverage assets in 2021 and used the net proceeds as investments in its brands and growth drivers.
Wrapping Up
A focus on areas with greater demand, such as snacking, is likely to continue working well for Mondelez. For 2022, management expects organic net revenues of more than 10%. It envisions a 10% increase in adjusted earnings per share or EPS at constant currency.
Shares of this Zacks Rank #2 (Buy) company have rallied 11.3% in the past three months compared with the industry’s growth of 6.2%.
Inter Parfums, a manufacturer, marketer and distributor of a range of fragrances and fragrance-related products, currently sports a Zacks Rank #1 (Strong Buy). IPAR has a trailing four-quarter earnings surprise of 27.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ 2023 sales and earnings suggests growth of 5.8% and 5.3%, respectively, from the corresponding year-ago reported figures.
Campbell Soup, which manufactures and markets food and beverage products, currently carries a Zacks Rank of 2. CPB has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Campbell Soup’s current financial-year sales and earnings suggests growth of 8.3% and 4.6%, respectively, from the corresponding year-ago reported figures.
e.l.f. Beauty, which provides cosmetic and skin care products, currently sports a Zacks Rank #1. ELF has a trailing four-quarter earnings surprise of 92.8%, on average.
The Zacks Consensus Estimate for e.l.f. Beauty’s current fiscal-year sales and EPS suggests an increase of 24.8% and 33.3%, respectively from the year-ago reported number.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Mondelez (MDLZ) Looks Tempting on Snacking Category Strength
Mondelez International, Inc. (MDLZ - Free Report) has been benefiting from the strength of its snacks business. At the launch of its fourth annual State of Snacking report, the company highlighted that consumers continue to put snacking as a priority, even amid inflated costs and economic headwinds.
A survey of the attitude and behavior of consumers in 12 countries reveals an increased preference for snacking, which is replacing traditional meals at an increasing rate. Given these trends, Mondelez looks well-placed with its efforts to solidify its snacking category.
Mondelez Focuses on Snacking
Mondelez has always been keen on expanding its business through acquisitions and alliances. The company has been expanding its snacking category in particular.
As consumers prefer snacking over traditional meals, the company’s core categories — chocolates and biscuits — have historically depicted resilience to economic downturns and pricing actions. Consumers in developed countries consider chocolates and biscuits as affordable indulgences and one of the most-valued snacking products.
Image Source: Zacks Investment Research
In its third-quarter earnings release, MDLZ noted that it closed the Ricolino buyout, which is expected to double the size of its Mexico business. In August 2022, it closed the buyout of Clif Bar. Management announced incremental investments in the Cocoa Life program and expanded its target to source all cocoa volumes from Cocoa Life by 2030.
Mondelez concluded the integration of the Chipita S.A. business, which was acquired in January 2022 and is a major producer of sweet and salty snacks in Central and Eastern Europe. Contributions from this acquisition boosted net revenues in the third quarter of 2022.
In 2021, Mondelez took over a renowned sports performance and active nutrition brand — Grenade. Further, the company acquired the Australia-based food company — Gourmet Food Holdings — which operates in the premium biscuit and cracker category.
Mondelez completed the acquisition of Hu Master Holdings, the parent company of Hu Products on Jan 4, 2021. Earlier, the company acquired a majority interest in Give & Go (in April 2020), which is a pioneer in fully finished sweet baked goods.
The company’s focus on undertaking acquisitions to gain scale in its categories and distribution capabilities bodes well. Mondelez is committed to increasing its focus on areas with higher growth potential. The company divested its beverage assets in 2021 and used the net proceeds as investments in its brands and growth drivers.
Wrapping Up
A focus on areas with greater demand, such as snacking, is likely to continue working well for Mondelez. For 2022, management expects organic net revenues of more than 10%. It envisions a 10% increase in adjusted earnings per share or EPS at constant currency.
Shares of this Zacks Rank #2 (Buy) company have rallied 11.3% in the past three months compared with the industry’s growth of 6.2%.
Other Consumer Staple Stocks
Some other top-ranked stocks are Inter Parfums (IPAR - Free Report) , e.l.f. Beauty, Inc. (ELF - Free Report) and Campbell Soup (CPB - Free Report) .
Inter Parfums, a manufacturer, marketer and distributor of a range of fragrances and fragrance-related products, currently sports a Zacks Rank #1 (Strong Buy). IPAR has a trailing four-quarter earnings surprise of 27.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ 2023 sales and earnings suggests growth of 5.8% and 5.3%, respectively, from the corresponding year-ago reported figures.
Campbell Soup, which manufactures and markets food and beverage products, currently carries a Zacks Rank of 2. CPB has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Campbell Soup’s current financial-year sales and earnings suggests growth of 8.3% and 4.6%, respectively, from the corresponding year-ago reported figures.
e.l.f. Beauty, which provides cosmetic and skin care products, currently sports a Zacks Rank #1. ELF has a trailing four-quarter earnings surprise of 92.8%, on average.
The Zacks Consensus Estimate for e.l.f. Beauty’s current fiscal-year sales and EPS suggests an increase of 24.8% and 33.3%, respectively from the year-ago reported number.