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Mondelēz Int. Outlines Long-Term Strategy, Provides 2019 Guidance

Published on Sep 12 2018 9:30 AM in A-Brands tagged: Trending Posts / Mondelez International / Future Outlook / Long-Term Strategy

Mondelēz Int. Outlines Long-Term Strategy, Provides 2019 Guidance

Cadbury's owner and confectionary giant, Mondelēz International, has outlined the company’s new long-term strategy to generate sustainable shareholder value.

In addition to this, the copmpany also established its new long-term targets, reaffirmed its 2018 outlook, and provided an outlook for 2019.

“With strong leadership in our categories, an unparalleled portfolio of global and local brands and a solid footprint in fast-growing markets, we are uniquely positioned to lead the future of snacking,” company CEO, Dirk Van de Put said.

“We have developed a clear strategic plan to accelerate our growth and drive attractive total returns centred around three strategic priorities: accelerate consumer-centric growth, drive operational excellence and build a winning growth culture.”

Growth-Oriented

Van de Put and other leaders discussed Mondelēz International’s plan to transition to a more growth-oriented company, focusing on several key priorities.

The group is seeking a more ‘holistic’ view of consumer snacking behaviours to sharpen brand positioning in clear demand spaces.

It also said it would focus on the transformation of marketing and digital capabilities to increase return on investment, as well as increasing investments in other channels such as e-commerce.

It also seeks the creation of a more agile organisation, with accelerated innovation capabilities, balanced investments in both global and local heritage brands to achieve higher growth and extending its brands into new markets.

To drive its new way of operating, the company outlined tangible actions it will take to reorient the organization around growth.

‘As such, it will focus on building a winning growth culture that more effectively leverages local commercial expertise and enables the business to move with greater speed and agility,’ the company’s statement read.

‘With increased investment in talent and capability building, this cultural shift will be complemented by a new employee incentive structure aimed at driving growth.’

Long-Term Targets

Based on its comprehensive strategic review and its new strategic framework, Mondelēz outlined long-term annual targets and capital allocation priorities.

“We are confident that our new strategic plan will create sustained long-term shareholder value, by accelerating our top-line growth, continuing to focus on productivity gains and improving our cash flow generation,” said Luca Zaramella, Mondelēz International’s CFO.

“We expect our new strategy to deliver consistent Adjusted EPS growth at constant currency in the high-single digits and strong Free Cash Flow in the years ahead.”

The confectionary giant reaffirmed its full-year 2018 outlook with Organic Net Revenue growth at the high end of the range of 1 to 2%. In addition, it now expects share repurchases to be approximately $2 billion in 2018.

The company also provided an outlook for 2019, where it expects Organic Net Revenue to increase 2 to 3%, Adjusted EPS to grow 3 to 5%, constant currency, and Free Cash Flow to be approximately $2.8 billion.

© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition. 

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