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) Sells Part of Gum Business, Enhances Core Areas
Read MoreHide Full Article
Mondelez International, Inc. (MDLZ - Free Report) has been focused on reshaping its portfolio. The company concluded the divestiture of its developed-market gum business in the United States, Canada and Europe (excluding Portugal) to Perfetti Van Melle Group.
As of now, Mondelez will keep the portion of the business in Portugal until it receives regulatory approval in that jurisdiction. Following the approval, the Portuguese part of the business will be offloaded and transferred to Perfetti Van Melle Group, which is a global gum and confectionery company.
The divestiture marks another step toward MDLZ’s commitment to strengthening its core categories, including chocolates, biscuits and baked snacks. Mondelez aims to generate 90% of its revenues from these core categories.
Image Source: Zacks Investment Research
Inside the Headlines
The divestiture encompasses the Rockford, Illinois and Skarbimierz and Poland manufacturing facilities as well as gum brands, including Trident, Dentyne, Stimorol, Chiclets, Bubbaloo, Hollywood, V6 and Bubbalicious in the United States, Europe and Canada. Additionally, the divestiture includes European candy brands like Cachou Lajaunie and La Vosgienne.
However, Mondelez will continue to run its gum business outside the United States, Canada and Europe, led by Stride in China, alongside all other candy brands and products.
This deal goes in tandem with Perfetti’s goal of becoming a worldwide leader in the gum industry. As for Mondelez, the sale of the developed-market gum business to Perfetti helps the company in its pursuit of becoming a major player in the global snacking space (especially chocolate, biscuits and baked snacks).
Focus on Core Categories
Mondelez 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.
The company’s core chocolate and biscuit categories remain sustainable in both developed and emerging markets. Both these categories registered double-digit growth in the second quarter of 2023. Management is focused on expanding these categories as they have considerable scope for growth (in terms of penetration and per capita consumption). On its last earnings call, management stated that it expects solid volume momentum for both these categories as it moves forward in 2023.
Mondelez expects 2023 organic net revenue growth of more than 12%. Management anticipates adjusted earnings per share (EPS) growth on a cc basis of more than 12%. Shares of this Zacks Rank #2 (Buy) company have risen 4.5% year to date against the industry’s decline of 11.4%.
Other Appetizing Picks
MGP Ingredients (MGPI - Free Report) , which produces and markets ingredients and distillery products, currently sports a Zacks Rank #1 (Strong Buy). MGPI has a trailing four-quarter earnings surprise of 18%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for MGP Ingredients’ current financial-year sales and EPS calls for growth of 5.8% and 10.4%, respectively, from the corresponding year-ago reported figures.
Kraft Heinz Company (KHC - Free Report) , a food and beverage product company, currently carries a Zacks Rank #2. KHC has a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Kraft Heinz’s current fiscal-year sales suggests growth of 2.2% from the corresponding year-ago reported figure.
Flowers Foods (FLO - Free Report) , a packaged bakery food product company, currently has a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 7.6%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current fiscal-year sales indicates growth of 6.7% from the year-ago reported number.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mondelez (MDLZ) Sells Part of Gum Business, Enhances Core Areas
Mondelez International, Inc. (MDLZ - Free Report) has been focused on reshaping its portfolio. The company concluded the divestiture of its developed-market gum business in the United States, Canada and Europe (excluding Portugal) to Perfetti Van Melle Group.
As of now, Mondelez will keep the portion of the business in Portugal until it receives regulatory approval in that jurisdiction. Following the approval, the Portuguese part of the business will be offloaded and transferred to Perfetti Van Melle Group, which is a global gum and confectionery company.
The divestiture marks another step toward MDLZ’s commitment to strengthening its core categories, including chocolates, biscuits and baked snacks. Mondelez aims to generate 90% of its revenues from these core categories.
Image Source: Zacks Investment Research
Inside the Headlines
The divestiture encompasses the Rockford, Illinois and Skarbimierz and Poland manufacturing facilities as well as gum brands, including Trident, Dentyne, Stimorol, Chiclets, Bubbaloo, Hollywood, V6 and Bubbalicious in the United States, Europe and Canada. Additionally, the divestiture includes European candy brands like Cachou Lajaunie and La Vosgienne.
However, Mondelez will continue to run its gum business outside the United States, Canada and Europe, led by Stride in China, alongside all other candy brands and products.
This deal goes in tandem with Perfetti’s goal of becoming a worldwide leader in the gum industry. As for Mondelez, the sale of the developed-market gum business to Perfetti helps the company in its pursuit of becoming a major player in the global snacking space (especially chocolate, biscuits and baked snacks).
Focus on Core Categories
Mondelez 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.
The company’s core chocolate and biscuit categories remain sustainable in both developed and emerging markets. Both these categories registered double-digit growth in the second quarter of 2023. Management is focused on expanding these categories as they have considerable scope for growth (in terms of penetration and per capita consumption). On its last earnings call, management stated that it expects solid volume momentum for both these categories as it moves forward in 2023.
Mondelez expects 2023 organic net revenue growth of more than 12%. Management anticipates adjusted earnings per share (EPS) growth on a cc basis of more than 12%. Shares of this Zacks Rank #2 (Buy) company have risen 4.5% year to date against the industry’s decline of 11.4%.
Other Appetizing Picks
MGP Ingredients (MGPI - Free Report) , which produces and markets ingredients and distillery products, currently sports a Zacks Rank #1 (Strong Buy). MGPI has a trailing four-quarter earnings surprise of 18%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for MGP Ingredients’ current financial-year sales and EPS calls for growth of 5.8% and 10.4%, respectively, from the corresponding year-ago reported figures.
Kraft Heinz Company (KHC - Free Report) , a food and beverage product company, currently carries a Zacks Rank #2. KHC has a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Kraft Heinz’s current fiscal-year sales suggests growth of 2.2% from the corresponding year-ago reported figure.
Flowers Foods (FLO - Free Report) , a packaged bakery food product company, currently has a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 7.6%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current fiscal-year sales indicates growth of 6.7% from the year-ago reported number.