Mondelēz International Inc beat Wall Street estimates for quarterly results, driven by a strong demand in North America, even as the Toblerone chocolate maker withdrew its 2020 outlook, citing the uncertainty caused by the coronavirus pandemic.
The rapid spread of the coronavirus outbreak that has claimed more than 211,000 lives and infected over 3 million across the globe, prompted people across the globe to stockpile essential supplies as well as snacks and chocolates.
'Significant' Demand Increase
The Oreo cookie maker said it saw a significant increase in demand in March for its snacks in developed markets, particularly in North America. About 15% increase in sales in North America helped offset weakness in emerging markets.
Revenue rose to $6.71 billion in the first quarter ended 31 March from $6.54 billion a year ago, beating analysts' average estimate of $6.61 billion, according to IBES data from Refinitiv.
Excluding certain items, Mondelēz earned 69 cents per share, above analysts' estimate of 66 cents.
Meanwhile, rival Hershey pulled its 2020 forecast last week and warned of weak sales in certain categories as households, worried about their financial future, cut spending on snacks and chocolates.