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) Outlines Growth Strategy for AMEA Region
Read MoreHide Full Article
Mondelez International, Inc. (MDLZ - Free Report) unveiled plans to highlight its strategy for the Asia Pacific, Middle East & Africa (AMEA) region at its Consumer Analyst Group of New York Conference. The company sees robust opportunities in the region and has core strategies designed to fuel sustainable growth there.
Mondelez plans to speed up revenue and share gains in the AMEA by focusing on its main priorities for the region. These include expanding brand penetration and strengthening its portfolio in the key snacking categories of biscuits and chocolates. Further, MDLZ is focused on increasing the distribution and channel exposure, alongside foraying into white spaces and adjacencies. Apart from these strategies, the company intends to showcase its business in China and India, which form two of the fastest-growing markets in the AMEA.
90% of revenues in the AMEA come from Mondelez’s focus brands, which include two $1-billion global brands in Cadbury Dairy Milk and Oreo, along with 11 brands generating more than $100 million worth of revenues (such as Kinh Do and Bournvita). In the past three years, the region has seen solid growth, with an average in the mid-single digits, due to robust volume gains, strong pricing and sustained productivity improvements.
Encouragingly, Mondelez is set to keep its growth story in the region going due to its solid experience, local-first approach, robust investments, efficient route-to-market infrastructure and a strong supply chain.
Image Source: Zacks Investment Research
What’s More?
Mondelez has been benefiting from its strategic efforts with a volume-induced top line, robust profit, higher investments in brands and capacities and a solid free cash flow generation. In 2021, management solidified its business with prudent buyouts and remains confident that its brands and a focus on the execution and strategy keep it well-placed for growth to stay firm amid the near-term volatility.
On its fourth-quarter 2021 call, management said that it expects at-home consumption to remain elevated, given the recent spike in Omicron cases. This, along with consumers’ increased indulgence of comfort foods, bodes well for the company’s core biscuits and chocolate categories. For 2022, management expects organic net revenues of more than 3% and a high single-digit increase in adjusted earnings per share or EPS at constant currency. These projections go in tandem with the company’s long-term algorithms. Pricing and volumes are likely to be major top-line drivers.
Shares of this Zacks Rank #3 (Hold) company have increased 6.8% in the past six months compared with the industry’s rise of 3%.
Looking for Solid Consumer Staple Stocks? Check These
Helen of Troy, a designer, developer, marketer, importer and distributor, carries a Zacks Rank #1 (Strong Buy) at present. Shares of Helen of Troy have dipped 13.9% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Helen of Troy’s current financial-year sales and EPS suggests growth of 0.8% and 0.6%, respectively, from the year-ago reported number. HELE has a trailing four-quarter earnings surprise of 19.1%, on average.
Flowers Foods, which produces and markets packaged bakery products, carries a Zacks Rank #2 (Buy). Shares of Flowers Foods have moved up 18.9% in the past six months.
The Zacks Consensus Estimate for Flowers Foods' current financial-year sales and EPS suggests growth of 7.2% and 2.2%, respectively, from the year-ago reported number. FLO has a trailing four-quarter earnings surprise of 9%, on average.
Medifast, the manufacturer and distributor of weight loss, weight management, healthy living products, and other consumable health and nutritional products, currently carries a Zacks Rank #2. Shares of Medifast have dropped 18.2% in the past six months.
The Zacks Consensus Estimate for Medifast’s current financial-year sales and EPS suggests growth of about 63% and 49.3%, respectively, from the year-ago reported figure. MED has a trailing four-quarter earnings surprise of 17.3%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Mondelez (MDLZ) Outlines Growth Strategy for AMEA Region
Mondelez International, Inc. (MDLZ - Free Report) unveiled plans to highlight its strategy for the Asia Pacific, Middle East & Africa (AMEA) region at its Consumer Analyst Group of New York Conference. The company sees robust opportunities in the region and has core strategies designed to fuel sustainable growth there.
Mondelez plans to speed up revenue and share gains in the AMEA by focusing on its main priorities for the region. These include expanding brand penetration and strengthening its portfolio in the key snacking categories of biscuits and chocolates. Further, MDLZ is focused on increasing the distribution and channel exposure, alongside foraying into white spaces and adjacencies. Apart from these strategies, the company intends to showcase its business in China and India, which form two of the fastest-growing markets in the AMEA.
90% of revenues in the AMEA come from Mondelez’s focus brands, which include two $1-billion global brands in Cadbury Dairy Milk and Oreo, along with 11 brands generating more than $100 million worth of revenues (such as Kinh Do and Bournvita). In the past three years, the region has seen solid growth, with an average in the mid-single digits, due to robust volume gains, strong pricing and sustained productivity improvements.
Encouragingly, Mondelez is set to keep its growth story in the region going due to its solid experience, local-first approach, robust investments, efficient route-to-market infrastructure and a strong supply chain.
Image Source: Zacks Investment Research
What’s More?
Mondelez has been benefiting from its strategic efforts with a volume-induced top line, robust profit, higher investments in brands and capacities and a solid free cash flow generation. In 2021, management solidified its business with prudent buyouts and remains confident that its brands and a focus on the execution and strategy keep it well-placed for growth to stay firm amid the near-term volatility.
On its fourth-quarter 2021 call, management said that it expects at-home consumption to remain elevated, given the recent spike in Omicron cases. This, along with consumers’ increased indulgence of comfort foods, bodes well for the company’s core biscuits and chocolate categories. For 2022, management expects organic net revenues of more than 3% and a high single-digit increase in adjusted earnings per share or EPS at constant currency. These projections go in tandem with the company’s long-term algorithms. Pricing and volumes are likely to be major top-line drivers.
Shares of this Zacks Rank #3 (Hold) company have increased 6.8% in the past six months compared with the industry’s rise of 3%.
Looking for Solid Consumer Staple Stocks? Check These
Some better-ranked stocks are Helen of Troy (HELE - Free Report) , Flowers Foods (FLO - Free Report) and Medifast, Inc. (MED - Free Report)
Helen of Troy, a designer, developer, marketer, importer and distributor, carries a Zacks Rank #1 (Strong Buy) at present. Shares of Helen of Troy have dipped 13.9% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Helen of Troy’s current financial-year sales and EPS suggests growth of 0.8% and 0.6%, respectively, from the year-ago reported number. HELE has a trailing four-quarter earnings surprise of 19.1%, on average.
Flowers Foods, which produces and markets packaged bakery products, carries a Zacks Rank #2 (Buy). Shares of Flowers Foods have moved up 18.9% in the past six months.
The Zacks Consensus Estimate for Flowers Foods' current financial-year sales and EPS suggests growth of 7.2% and 2.2%, respectively, from the year-ago reported number. FLO has a trailing four-quarter earnings surprise of 9%, on average.
Medifast, the manufacturer and distributor of weight loss, weight management, healthy living products, and other consumable health and nutritional products, currently carries a Zacks Rank #2. Shares of Medifast have dropped 18.2% in the past six months.
The Zacks Consensus Estimate for Medifast’s current financial-year sales and EPS suggests growth of about 63% and 49.3%, respectively, from the year-ago reported figure. MED has a trailing four-quarter earnings surprise of 17.3%, on average.