Mondelez International Inc. (MDLZ), the snacks business split from Kraft Foods, Tuesday reported a lower profit for the first quarter, hurt mainly by the absence of earnings from discontinued operations recorded a year ago. Nevertheless, excluding items, earnings for the quarter improved from a year ago, as revenues grew on strong sales in China, Brazil and India.
Moving ahead, Mondelez, the maker of Oreo biscuits and Cadbury's chocolate, lifted its operating earnings guidance for the full year, but stayed with its revenue outlook.
Mondelez International, the snack business spun off from Kraft Foods, said revenues for the quarter inched up 0.9 percent to $8.74 billion from $8.67 billion a year ago. Organic net revenues rose 3.8 percent.
Analysts polled by Thomson Reuters estimated revenues of $8.68 billion for the quarter.
Revenue growth was driven mainly by performance from emerging markets, led mainly by China, Brazil and India, and continued improvement in Russia. Latin American revenues increased 2 percent and Asia Pacific rose 3.6 percent.
Gross margin advanced to 37.1 percent from 36.9 percent last year, while operating margin rose to 9.5 percent from 10.4 percent last year.
Deerfield, Illinois-based Mondelez' first-quarter profit dropped to $568 million or $0.32 per share from $813 million or $0.46 per share last year. Results for the prior-year quarter included income from discontinued operations of $480 million.
This is the third quarter Mondelez is reporting results after becoming independent. Mondelez was formed when the original parent entity Kraft Foods Global Inc. split into two companies last year, with its North American grocery business called Kraft Foods Group Inc. (KRFT), and international snacks business-- Mondelez.
Excluding special items, operating earnings from continuing operations for the quarter rose to $0.34 per share from $0.31 per share a year ago.
Analysts polled by Thomson Reuters estimated earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Looking ahead to fiscal year 2013, Mondelez now expect operating earnings of $1.55 to $1.60 per share, up from prior estimate of $1.52 to $1.57 per share. The company lifted its earnings guidance citing benefit from tax items. The company reaffirmed its full-year revenue growth outlook, which is expected at the low end of long-term growth target of 5 to 7 percent.
Analysts currently expect earnings of $1.56 per share on revenues of $36.38 billion for the year.
MDLZ closed Tuesday's trading at $31.41, up $0.26 or 0.83%, on the Nasdaq. The stock gained $0.29 or 0.92%, to trade at $31.70 in after hours.
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