Mondelez International (NASDAQ:MDLZ) delivered strong results for the first quarter of 2023, helped by higher prices and sales volumes. Following the news, shares of the company gained 2.5% in the extended trading session on Thursday.
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Mondelez manufactures and markets food products and beverages. It owns some well-known brands, namely Cadbury, Toblerone, and Oreo cookies, among others.
The company delivered Q1 sales of $9.17 billion, which increased by 18.1% year-over-year and topped the consensus estimate of $8.46 billion. This growth comes from a 19.4% increase in organic sales. Moreover, pricing improved by 16.2% and volume rose by 3.2% in Q1.
Regarding bottom-line performance, Mondelez revealed adjusted earnings of $0.89 per share, which beat analysts’ estimates of $0.80 and rose 17.3% from the prior-year period.
Mondelez CEO Dirk Van de Put said, “We saw broad-based demand across both developed and emerging markets, as consumers around the world continue to prioritize our chocolate, biscuits and baked snacks categories and brands.”
Based on its upbeat Q1 performance, the company raised its full-year 2023 outlook. Mondelez expects 10% organic revenue growth in comparison to the prior outlook of 5% to 7%. Further, adjusted EPS, on a constant currency basis, is anticipated to grow by a double-digit percentage as compared to the previous forecast of high single-digit growth.
Is MDLZ a Good Stock to Buy Now?
The company’s strong brand name, geographic diversity, and efforts to expand e-commerce offerings are encouraging. Additionally, Mondelez’s focus on enhancing shareholders’ value through share repurchases and dividend growth is a tailwind.
Mondelez has a Strong Buy consensus rating on TipRanks. This is based on 13 Buy and one Hold recommendations assigned in the past three months. The average price target of $76 implies 3% upside potential from current levels. MDLZ stock is up 12% in 2023 so far.
